India's exports grew by an impressive 50% in February, crossing the $200 billion mark during the first eleven months of 2010-11 on the back of rising demand from the US and other markets.
Exports went up by 49.7% year-on-year during February to $23.5 billion, taking the April-February 2010-11 figure to $208.2 billion, an increase of 31.4% over the year-ago period and past the yearly target of $200 billion.
Imports also increased by 21.2% in the month under review to $31.7 billion, leaving a trade deficit of $8.1 billion, according to the Commerce Ministry data released today.
During April-February 2010-11, imports grew by 18% to $305.3 billion over the same period last year. The trade gap for the period stood at $97 billion.
The exporting sectors which performed well during the 11 months of fiscal include engineering (81%), petroleum and oil lubricants (34%), cotton yarn and made-ups (43%), chemicals (22%) and electronics (40%).
"The growth which we are seeing is basically from the markets of Asia, Latin America and Africa. In these new markets demand for our products are increasing," Ramu Deora, the President of India's apex exporters body FIEO, said.
However, Deora said that demand is still weak in several European markets.
The US and Europe were the traditional markets for Indian exporters, but after the global economic crisis, exporters increased their engagement in new markets of Asia, Latin America and Africa.
The government is providing duty incentives to exporters for these new markets.
Commerce Secretary Rahul Khullar had said that going by this trend, the country's exports are expected to touch the figures of $230-235 billion. Imports may end up to $350 billion and balance of trade to $105-115 billion by the end of 2010-11.
Oil imports in February dipped by 0.3% to $8.21 billion from $8.24 billion in February 2010. However, non-oil imports grew by 31% to $23.48 billion from $17.9 billion.
