International BusinessExport growth turns positive after 13 months
After falling continuously for 13 months, the country’s merchandise exports registered a growth of 18 per cent in November, at $13.2 billion (Rs 61,800 crore) against $11.16 billion (Rs 52,250 crore) in the same month last year. However, cumulative growth since the beginning of the current financial year continues to show a decline.
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Total exports for April-November 2009 were $104.25 billion (Rs 4.9 lakh crore), a fall of 22.3 per cent from the $134.2 billion (Rs 6.3 lakh crore) in the corresponding period of last financial year, indicated official data released today by Union commerce secretary Rahul Khullar.
Khullar said the low base in November last year (when the economic crash had begun) was mainly responsible for the growth this November. It does not, he emphasized, indicate a surge in demand for Indian goods in international markets.
Some major sectors that did well during the month were petro products, gems and jewellery, basic chemicals, iron ore, readymade garments, manmade fibre and leather products. Exports of petroleum products reached $2.4 billion (Rs 11,240 crore) in November against $1.3 billion (Rs 6,100 crore) in the same month last year, whereas gems and jewellery exports topped $2.15 billion (Rs 10,070 crore) from $1.6 billion (Rs 7,500 crore) in November 2008.
Some sectors are still facing severe problems and the government is carrying out a sector-wise review. Exporters fear withdrawal of present stimulus measures. According to A Sakthivel, president, Federation of Indian Export Organisations, “The sops should continue at least till the end of 2010-2011, as the current scenario is not all comfortable.”
Some of the measures were extension of interest subvention, additional funds allocation for certain schemes, enhancing duty drawback rates on specific products and abolition of fringe benefits tax.
Besides, the RBI also increased liquidity to banks for better credit flow by reducing the key policy rates, selling of foreign exchange through banks to augment supply in domestic forex markets and enhancing the period of pre-shipment and post-shipment rupee export credit by 90 days each.