NEW DELHI, July 7: Exports have fallen by 7.54 per cent during April-May 1998-99 compared to the same period of the previous year, with the cotton yarn and hardware sectors showing the steepest fall. During the month of May alone, exports recorded a negative growth rate of about 17.22 per cent.Concerned over the fall, the commerce and finance ministers today met to discuss the poor export performance and agreed to work out a promotion package for exports, especially those sectors that had shown a steep fall during April-May this year. The package is expected to be targeted at the electronic hardware and software sectors, cotton yarn and agricultural products. The commerce ministry has taken up the issue of the high rates of export credit with the finance ministry. The commerce ministry has targeted a 20 per cent export growth rate for the year. According to figures released by the commerce ministry today, exports during April-May 1998-99 fell by 7.54 per cent to touch $ 4,994 million against the $ 5,401.41million during Aril-May 1997-98.The fall in exports came mainly from the ports of Nhava Sheva and the cyclone-hit Kandla, but they also fell by a third from the Bangalore airport and the Vizag seaport during the two months.The biggest increase in imports came in the non-oil sector which jumped 22.2 per cent to touch $ 5930 million against the $ 4850 million in the previous year.Overall, imports saw a 9.71 per cent jump to $ 6850 million compared to the $ 6243 million in the same period of the previous year. Oil imports are valued at $ 919 million, 34 per cent down compared to the 1997-98 period. The trade deficit has more than doubled to $ 1856 million from the same period last year when it was $ 842 million.The government has begun working on sector-specific export strategies to improve performance of individual sectors while at the same time expanding the country's export basket to cater to newer markets. Export growth during 1997-98 touched only 2.6 per cent against the targeted 18 per cent.The target was later scaled down to 10 per cent and then to 5 per cent. However, poor global export growth combined with competitive exports from South Asian countries slowed down Indian exports to a less than 5 per cent growth.Commerce Minister Ramakrishna Hegde discussed sector-specific problems and the issue of export credit with finance minister Yashwant Sinha and it was agreed to work out a package of measures on a priority basis, more so in case of products that have shown a negative trend during April and May this year, the release said.Expressing concern over the decline in export growth during April-May coming on top of sluggish exports over the last couple of years, Hegde underlined the need for immediate steps to reverse the negative trend.
