This impressive double digit growth rate — considered to be the highest in the monthly performance in the last two years — has given rise to hope for merchandise export surpassing the target of $200 billion in the current fiscal 2010-11.
While on one hand, the faster pace of export growth rate has brightened prospect of a robust performance in export sector, which had been hit hard due to global slowdown, faster import growth rate has raised concerns over the country’s widening trade deficit.
After posting negative growth rate for thirteen months in a row, exports started posting positive growth rate since November, the previous year.
Cumulatively, in the first six months of the current fiscal — April to September 2010 — exports aggregated to $103.30 billion posting a 27.6 per cent growth rate. “The 23.2 per cent growth rate achieved by export in September is heartening. In the first six months of this year, we have done well. We are on very much on track to surpass the export target of 200 billion dollars in the current fiscal,” Commerce Minister Anand Sharma said reacting to latest trade data.
However, Commerce Secretary Rahul Khullar said the high double digit growth rate as displayed by the export figure in September could be partly attributed to the low base in the previous year and increasing prices. “At the same time, we must take into account that this is the first month in the last two years that we are witnessing the highest growth rate,” he said.
“As we have already achieved a level of $103.3 billion dollars, we are on course to achieve the target of 200 billion dollars during the financial year 2010-11,” Khullar said.
Analysing sector wise performance of export, the Commerce Secretary explained that some sectors such as engineering, gems and jewellery, readymade garments, marine products, leather and leather products had done well.