India's exports shot up by an annualised 23.2 per cent in September, 2010, to a two-year high of $18.02 billion, but even faster import growth increased concerns over the country's widening trade gap.
The country is on track to surpass the export target of $200 billion for the current fiscal, Commerce and Industry Minister Anand Sharma said here today.
In the April-September period of the 2010-11 fiscal, exports aggregated to $103.30 billion, a 27.6 per cent increase vis-a-vis the year-ago period.
"In the first six months of this year, we have done well. We are on very much on track... To cross $200 billion," Sharma said.
Earlier, releasing the export-import figures for September, Commerce Secretary Rahul Khullar said the growth could be partly attributed to the low base in the previous year and increasing prices.
However, "this is the first month in which, for the last two years, exports this year are higher than 2008-09 and 2009-10", Khullar said.
India's exports were severely impacted due to the global economic slowdown and totalled only $14.6 billion in September, 2009. India's exports were valued at $15.8 billion in September, 2008.
After remaining in the red for 13 months in a row, exports have been growing since November, 2009.
However, imports grew even faster, by 26.1 per cent to $27.14 billion in September.
Cumulative imports in April-September, 2010, added up to $166.5 billion, translating into a massive trade gap of $63.2 billion during the six-month period.
"We still need to be concerned about the balance of trade deficit," Khullar said. Crude oil, gems and jewellery and edible oil constitute the major part of the country's import bill.
In the first six months of the fiscal, imports of petroleum and related items went up by 54 per cent, gems and jewellery by 21 per cent and engineering items by 41 per cent.
The trade deficit in September alone was $9.12 billion, the Secretary said. However, this was lower than the $13 billion deficit in August.
Except for iron ore, electronic items, man-made fibre and handicrafts, exports from other sectors, including gems and jewellery, engineering goods and apparels, witnessed growth.
Apex exporters' body FIEO, however, said the strengthening rupee against the US dollar was a cause for concern and the Reserve Bank should intervene to check the volatility. The rupee has appreciated by about 5 per cent against the dollar since January.
