Export of goods from the country in June jumped by 30.4 per cent at $17.75 billion compared to $13.60 billion in the same month last financial year, whereas imports rose to $28.30 billion from $23 billion, posting 23 per cent growth year-on-year.
The rise has been for the last eight months since November 2009, prior to which exports fell by an average of 15-20 per cent for 13 months in a row.
Total cumulative export of products ranging from mangoes to machinery since the beginning of this financial year also posted 32.2 per cent growth at $50.77 billion from $38.39 billion during April-June 2009-10, according to data released by the Ministry of Commerce and Industry today.
On the other hand, total imports during the first three months of 2010-2011 surged by 34.2 per cent to a whopping $83 billion from $61.87 billion in the corresponding period of 2009-10. The total trade deficit during the period reached $32.26 billion from $23.4 billion in the same period last year.
However, even as some sectors are showing signs of an early revival, a few labour-intensive sectors continue to reel under severe crisis.
According to Commerce Secretary Rahul Khullar, the growth in the country’s foreign trade had been mainly due to a low base effect as the current level has not yet been able to exceed the growth in exports that was seen prior to the financial crisis when the average growth in monthly exports hovered 18-25 per cent.
In June 2008, exports reached $19.20 billion from $12.1 billion in the same month a year ago, while total exports during April-June 2008 stood at $56.40 billion from $36 billion during the corresponding period in the previous year.
“The growth that we are seeing now is definitely healthy but not robust as we have still not been able to exceed the level that we saw prior to the recession. Moreover, things have not stabilised yet as economies like the US and Europe have still not recovered fully. Also, the labour-intensive sectors need assistance for some more time to come,” said K T Chacko, director, Indian Institute of Foreign Trade.
Export of engineering goods, petroleum products, iron ore, gems, precious and semi-precious stones, chemical products rose significantly while that of ready-made garments, textile and man-made fibres fell. Import of oil in June rose by 26.5 per cent to $8.35 billion from $6.60 billion, whereas non-oil imports grew by 21.5 per cent to around $20 billion from $16.41 billion in the same month last year.
“Engineering products might be performing well compared to the other sectors but we are facing several other procedural and transaction problems, which is denting our capital. Shipping costs have increased by more than 40 per cent, consignments are lying in the ports in the absence of large vessels as a result of which clients are resorting to domestic procurement. The situation is still very tricky as far as our traditional markets are concerned. Everything is in a fragile state,” said Anupam Shah, vice-chairman of Kolkata-based Engineering Exports Promotion Council of India.
Last week Commerce and Industry Minister Anand Sharma met exporters from various sectors under the aegis of the Federation of Indian Export Organisations to identify the sectors that still needed financial assistance from the government.
Sharma said that the government might look at providing some more incentives mostly for labour-intensive sectors that have still not been able to recover completely even as some such as engineering, chemicals and petroleum have shown an average growth of 42 per cent.
