March exports up 43.8% at $29.89 bn

Merchandise export in March reached $29.13 billion, up 43.8 per cent over $20.25 billion in the same month a year ago, while imports grew 17.2 per cent to $34.74 billion from $29.62 billion a year ago.

With this, the country’s total exports in goods for 2010-11 financial year reached $245.29 billion, registering 37.5 per cent growth against $178.75 billion in 2009-10, according to the foreign trade data released by the Ministry of Commerce and Industry.

The government had set a target to attain $200 billion worth of exports in 2010-2011 and $450 billion by 2014.

“Export momentum has definitely picked up. The strategy of diversification in terms of both products as well as markets has paved the way for growth on a long-term basis, as demand from developed countries remained sluggish.

Going forward the free trade pacts that India has signed with Japan, Korea, Malaysia and others would also support the growth. But in the coming months, there is going to be slight moderation as the base effect would be gone. But we do expect to achieve $290 billion exports in this financial year,” said Shubhada Rao, chief economist, Yes Bank.(Click here for table)

Import of crude oil during March grew 8.2 per cent over FY10 to $9.43 billion from $8.72 billion, while non-oil imports during March stood at $25.30 billion as against $21 billion, up 21 per cent from March 2010, according to the statement. “Diversification strategy is paying off and the country is set to reap dividends in the near future. Exports in 2011-12 would cross $300 billion and would touch $500 billion by 2014-15,” Federation of Indian Export Organisations President Ramu S Deora said adding that the concern over increasing cost of credit and infrastructure bottlenecks still remained.

The sectors which did exceedingly well in 2010-11 were engineering products as it rose a staggering 84.8 per cent to $60.1 billion, petroleum 50.6 per cent at $42.5 billion, electronic goods 34.5 per cent at $7.4 billion, textiles at $21 billion, drugs and pharmaceuticals at $10.3 billion and carpets at $1.1 billion. This is for the first time that exports of carpets from India have exceeded the $1 billion-mark.

Imports soared on the back of petroleum items that rose 16.7 per cent at $101.7 billion, fertilisers at $37.6 billion, machinery at $27.2 billion, electronic goods at $27 billion, and chemicals at $15 billion.