Exports remained robust with a 30.4 per cent annual growth in June at USD 17.75 billion,but were short of the impressive May performance,amidst apprehensions of the European debt trouble casting shadow on global trade.
In June 2009,exports had shrunk by about 28 per cent under the impact of the global financial meltdown.
“There is a problem in Europe…mood is not good out there in Europe,” commerce secretary Rahul Khullar told newsmen here while releasing the June trade figures.
Though on a low base for comparison,in May exports had posted an impressive 35.1 per cent growth at USD 16.1 billion.
Imports for the month increased 23 per cent to USD 28.3 billion,Khullar said,widening the country’s trade deficit to USD 10.55 billion.
In the first quarter ended June,exports stood at USD 50.8 billion showing a growth of 32.2 per cent over the year- ago period. Against this imports grew by 34 per cent to USD83 billion,leaving the country with a trade deficit of USD 32.2 billion.
The sectors which registered healthy growth in June include engineering (90 per cent),petroleum and oil products (66 per cent),gems and jewellery (24 per cent) and chemicals (41 per cent). However,exports of readymade garments contracted by 14 per cent in the month.
Federation of Indian Export Organisations (FIEO) president A Sakthivel said the focus given by the commerce ministry both for diversification of products as well as market has started yielding results.
To further boost exports,Sakthivel called for a special export credit rate under the new base rate regime,which came into effect from July 1.
The global economy slipped into major crisis from September-October 2008,impacting the country’s exports particularly to the developed markets.
While the exports have recovered following turnaround in the global economy,they are still below the 2007-08 levels and the first half of 2008-09 fiscal.
The world’s second fastest growing economy is aiming about 15 per cent export growth this fiscal,following a drop of 4.7 per cent in 2009-10.