Need to diversify export markets: Survey

It cautioned that if the global situation worsens,the pressure for stimulus measures could again resurface and protectionist measures from trading partners could increase.

Though the country8217;s dependence on the EU and the US has reduced,Europe still has a 19.5 per cent share in India8217;s exports.

During the April-January period of this fiscal,India8217;s exports grew at 23.5 per cent to USD 242.8 billion.

The growth in exports,which was moving robustly at 40.6 per cent during the first half of this fiscal,began to decelerate from October due to the euro zone crisis before recovering back to 6.7 per cent and 10.1 per cent in December 2011 and January 2012,respectively.

The share of Asia and ASEAN in the total trade increased from 33.3 per cent in 2000-01 to 57.3 per cent in the first half of 2011-12,while that of Europe and America

fell from 42.5 per cent to 30.8 per cent,the survey said.

8220;This has helped India weather the global crisis emanating from Europe and America,8221; it said.

The survey added that while India has made new forays in skill-and capital-intensive exports like IT,gems and jewellery,and engineering,8221;it is losing steam in its traditional area of strength,i.e. in the labour-intensive exports like textiles,leather,handicrafts and carpets8221;.

In the top 100 import items of the world in 2010,India has only 15 items with a share of 2 per cent and above. Of these,only 3 items are in the top 25 and 4 in the top 30.

Among the top 100 items,there are many where India has already developed competence but Indias share is very small. 8220;Some of them are simple items like taps,valves,pipes,boiler and tanks8221;.

Besides,some of India8217;s trading partners are dependent on Europe,thus affecting India8217;s trade indirectly,it added.

The Economic Survey also has raised concerns on increasing bilateral trade deficit with countries like China and Switzerland.

It further said that as per the World Bank and IFC report,India is ranked 132 on 8216;ease of doing business8217;,it said,adding neighbouring countries like Sri Lanka,Vietnam,Pakistan and Bangladesh are ahead of India.

The Survey was tabled by the Finance Minister Pranab Mukherjee in the Lok Sabha today.

Commenting on the widening trade deficit,the Reserve Bank of India in its monetary policy review today said that while merchandise exports growth decelerated,moderation in imports growth was less pronounced leading to a larger trade deficit.

India8217;s trade deficit during April-January this fiscal stood at USD 148.7 billion as against USD 105.9 billion in the same period last fiscal.

8220;With sluggish demand conditions in the advanced economies impeding exports growth and crude oil prices rising sharply,the current account deficit CAD is likely to remain high.

The financing of the CAD will continue to pose a challenge so long as the global situation remains uncertain,8221; it said.

The Economic Survey today said that with UAE becoming India8217;s largest trading partner,followed by China,the US which was at the first position in 2007-8 relegated to third spot.

8220;Time to export is 16 days for India,21 for China,and 5 for Denmark. Cost to export is USD 1,095 per container for India compared to USD 500 in China and USD 450 in Malaysia.

Number of import documents that need clearance are 9 in India,5 in China,and 2 in France,8221; the survey said.

Time to import is 20 days in India,24 in China,and 4 in Singapore. Cost to import is USD 1,070 per container in India,USD 545 in China,and USD 439 in Singapore,it added.

8220;Thus,a lot needs to be done on the trade facilitation front,8221; the survey said.

It added that the challenges for India on the trade front are daunting but they need to be addressed with speed and dexterity as the opportunities are equally great and still untapped.

Greater trade facilitation by removing the delays and high costs due to procedural and documentation factors,besides infrastructure bottlenecks is another major challenge for the country8217;s merchandise shipments.