India lags in export growth

Exports growing faster in Brazil, Russia, China and South Korea

Export growth in 2003 in key developing countries, including Brazil, Russia, China and South Korea, has outdone India's 13.48 per cent rise registered during April-December.

While China tops the list with a growth of 32.8 per cent during January-October 2003 with exports valued at $333.7 billion, Russia's exports rose by 25.3 per cent in 2003 to $133.7 billion.

Similarly, Brazil posted a record $24.8 billion trade surplus last year on account of a 21 per cent surge in exports that helped pull the economy out of a slump.

Compare this with India's figures. According to commerce ministry's statistics, India is fourth among the BRIC (Brazil, Russia, India, China) group, with total exports during April-December valued at $42.4 billion. Exports surged by 42 per cent in December.

During April-January, exports rose 12.83 per cent to $47.5 billion. India's export performance, however, compares favourably with that of developed economies like United States, Japan and the European Union.

US exports grew 4.57 per cent to $1,018.6 billion with merchandise exports estimated at $713.8 billion and services at $304.8 billion. During April-November, Japan's exports were also estimated to have grown over 4 per cent in Yen terms.

The European Union, on the other hand, recorded a 2.4 per cent drop in exports which were estimated at Eu 972.84 billion. The figures were, however, subject to revision since data from Greece and Finland were incomplete, an EU official said.

According to World Trade Organisation statistics, India had posted the second highest export growth, behind China, in 2002. Officials said it was normal in India to register high growth rates in one year and low or decreased growth in the following year.

"Exports grew by over 18 per cent in 2002-03 and we have followed it up with a 12 per cent-plus growth in the first 11 months, which is a healthy increase," an official said.

The commerce department is blaming the appreciation of the rupee to the dollar as the prime reason for a slower growth rate during the current fiscal.

They point out to the textile and marine sectors, two large export items to the US, which are facing the prospect of closing the year with reduced realisation.