Macroeconomic Indicators - Exports in September Grow by 23pct.

India's exports shot up by an annualized 23.2% in September 2010 to a two year high of USD 18.02 billion, but even faster import growth increased concerns over the country's widening trade gap.

Mr Anand Sharma commerce and industry minister said that the country is on track to surpass the export target of USD 200 billion for the current fiscal.

In the April to September period of the 2010-11 fiscal, exports aggregated to USD 103.30 billion, a 27.6% increase vis a vis the year ago period. Mr Sharma said that "In the first six months of this year, we have done well. We are on very much on track... to cross USD 200 billion.”

Earlier, releasing the export-import figures for September, Commerce Secretary Rahul Khullar said the growth could be partly attributed to the low base in the previous year and increasing prices. However, Mr Khullar said that "this is the first month in which, for the last two years, exports this year are higher than 2008-09 and 2009-10.”

India's exports were severely impacted due to the global economic slowdown and totalled only USD 14.6 billion in September, 2009. India's exports were valued at USD 15.8 billion in September, 2008.

After remaining in the red for 13 months in a row, exports have been growing since November, 2009. However, imports grew even faster, by 26.1 per cent to USD 27.14 billion in September.

Cumulative imports in April-September, 2010, added up to USD 166.5 billion, translating into a massive trade gap of USD 63.2 billion during the six-month period.

"We still need to be concerned about the balance of trade deficit," Khullar said. Crude oil, gems and jewellery and edible oil constitute the major part of the country's import bill.

In the first six months of the fiscal, imports of petroleum and related items went up by 54 per cent, gems and jewellery by 21 per cent and engineering items by 41 per cent.

The trade deficit in September alone was USD 9.12 billion, the Secretary said. However, this was lower than the USD 13 billion deficit in August.

Except for iron ore, electronic items, man made fiber and handicrafts, exports from other sectors, including gems and jewellery, engineering goods and apparels, witnessed growth.

Apex exporters' body FIEO, however, said the strengthening rupee against the US dollar was a cause for concern and the Reserve Bank should intervene to check the volatility. The rupee has appreciated by about 5 per cent against the dollar since January.

Source : steelguru.com