Punjab export growth slows down, but traders still hopeful

Exports in Punjab have been growing more than 20 per cent for more than two years and are in line with the country's overall export growth rate.

But if one is to go by the latest data from the state-level bankers' committee (SLBC), Punjab and the Reserve Bank of India, at Rs 5,573 crore, the figures for the period from April to September 2005 have shown a growth of only 5.95 per cent as compared with that in the corresponding period last year.

Further, as per data from the RBI, exports from Punjab up to December 2005 are Rs 8,564 crore and are expected to be about Rs 12,000 crore at the end this fiscal year, showing a growth of only 12 per cent, in comparison to 27.35 per cent and 20.10 per cent increase in 2003-04 and 2004-05 respectively.

India's merchandised exports, during the first half of the current financial year, that is April 2005 to September 2005, witnessed a growth of 17.27 per cent over the September 2004 figures. It has grown from Rs 1,63,329 crores to Rs 1,91,548 crores for the above period. The total exports for 2004-05 were Rs 35,6069 crores, the data shows.

Similarly, the share of Punjab in the total exports which increased from 2.75 per cent during 2002-03 to 3.01 per cent during 2004-05 has declined to about 2.8 per cent during the half-year ended September 2005.

Convener of SLBC Punjab ID Singh says as far as long-term vision is concerned, there are good signs for Punjab exporters.

The government is taking new initiatives to boost exports in the region like a high-capacity freight corridor from Ludhiana to Somnagar in West Bengal is to link the state to the eastern ports, the setting up of an SEZ in Amritsar, Mohali and Integrated Textile Park in Ludhiana. This will also help in generating employment in the state, he adds.

He says last year, there was abnormal increase of exports of drugs from the state of about Rs 380 crore, which is not reflected this year and this is the main cause of negligible growth during April-September 2005.

"Exports of sewing machines, handtools, leather goods have shown the maximum growth rate of about 54 per cent, 40 per cent and 30 per cent respectively over the corresponding half-year period in 2005.

Commodities where export growth figures have declined, include readymade garments, engineering goods, handicrafts and food products to about 51 per cent, 48 per cent, 33 per cent and 31 per cent respectively.

However, yarn and textiles, which constitute major portion of exports in Punjab, have grown 6 per cent from Rs 1,356 crore to Rs 1,449 crore in the half-year period in 2005 corresponding to the same period last year," Singh said.