JOIN USExports zoom by 21.3% in Oct
With the onset of modest recovery in global recovery in the last few months country’s export, which has been struggling hard to come out of quagmire of shrinkage in demand for Indian goods and services following setting in of global slowdown in late 2008, has been showing improved performance consistently.
Under the ripple effect of shrinkage of demand in India’s key importing countries like US, Japan and European countries country’s export started declining consistently since October 2008. After the government introduced stimulus packages in early 2009 export started showing positive growth only in November last year.
As the latest trade data shows exports during October were valued at nearly US$18 billion which is 21.3 per cent higher than the level of US$14.8 billion in same month last year.
Cumulatively exports for the period April-October 2010 stood at US$121.394 billion as against US$95.756 billion in the corresponding period of previous fiscal registering a growth of 26.8 per cent.
Trade analysts attribute the growth in export to improved demand in the US and EU, besides increase in exports to African and Latin American countries. Commerce Ministry officials said going by this trend export was likely to exceed the target of US$200 billion set for 2010-11.
On the other hand, imports during October were valued at US$27.689 billion posting a growth of 6.8 per cent over the level of imports valued at US$25.936 billion in same month last year.
Cumulatively imports during April-October, 2010 stood at US$194.167 billion as against US$154.067 billion registering an alarming growth rate of 26 per cent over the same period last year. Correspondingly the trade deficit for April-October, 2010 ballooned to US$72.774 billion as against US$58.311 billion in the corresponding period of previous fiscal.
Federation of Indian Export Organization President A Sakthivel said despite the rise in the trade deficit, the situation would stay within “manageable limits”. He, however, suggested “the momentum given to exports in the last few months needs a further push in view of the fragile market condition in the second half of the financial year.”