Net forex earnings of shippers down marginally

The Indian shipping industry reported gross foreign exchange earnings of Rs 7,440.47 crore in 2001-02, compared with the previous year's Rs 6,902.36 crore.

The net foreign exchange earnings/savings were, however, marginally lower at Rs 4,620.90 crore in 2001-02 from Rs 4,673.89 crore in the previous year, the Indian National Shipowners Association (INSA) said in its latest annual review.

"The high level of foreign exchange earnings reflects the importance of shipping services as a valuable foreign exchange earning asset," the representative body of domestic shipowners said.

After deducting direct and indirect expenses and charter hire payments, the net operating income amounted to Rs 4,486.87 crore in 2001-02.

Further, the net forex earnings and savings came to Rs 4,278.56 crore after accounting for financial costs which was further boosted by Rs 342.34 crore through the sale proceeds of ships.

Interestingly, the increase in the gross earnings comes even as the participation of domestic ships in India's international trade has been on a decline.