Exports to new marts targeted in FTP dismal: RBI

The country has also not developed much of trade relation with Asia and Oceania, as the countries in this region accounted for only 2.7 per cent of Indian exports in 2008-09.
Africa and Latin America were also lower on the priorities of Indian exporters, as is seen by the RBI study.

According to the study, the entire Latin American region accounted for only 3.5 per cent of India’s exports, while consignments to Africa were about 7 per cent of the country’s total exports of US$168 billion in 2008-09. It was in this backdrop that the new Foreign Trade Policy unveiled on August 27, seeks to promote exports to these countries under the promotional focus market and focus product schemes.Realising that the government cannot create demand for Indian products in the recession hit markets of the US and western Europe, the policy gave incentive of 2.5-3 per cent on shipments to countries like Algeria, Egypt, Kenya, Nigeria, South Africa, Tanzania, Brazil, Mexico, Ukraine, Vietnam, Combodia, Australia and New Zealand.

In terms of individual countries the US continues to be the single largest destination for Indian exports. However, China and Singapore are catching up fast, the study said.


No real impact of crisis on remittances

The global financial crisis has so far failed to significantly slow down inflow of remittances in India, the Reserve Bank said. “Available information indicates that inward remittances to India have not been impacted significantly by the economic crisis,” the RBI said in its annual report. According to the World Bank estimates, remittance flows to developing countries, which increased to US$328 billion in 2008 from US$285 billion in 2007, are projected to decline by 7.3 per cent in 2009, the RBI said.India remained the top recipient of migrant remittances with US$52 billion in 2008 as against US$38.7 billion, it said citing the World Bank estimates, and added flows to South Asia have continued strong growth.