India’s Diversification Strategy Leads to Unexpected Export Growth.

According to the Federation of Indian Export Organizations (FIEO), India’s diversification strategy is working. In the 2010-11 fiscal year, India’s exports went up by 37.6%, totaling $245.9 billion, surpassing the government’s original target for the year of $200 billion.

In March alone, exports went up by 43.9% to $29.1 billion while imports went up by 17.3% to $34.7 billion. In all, the trade deficit for the month was $5.6 billion. The trade deficit for the country hit a 23-month high in August but later went down and moderated itself backed by the stronger-than-expected exporting power. In December, the deficit was below 2.5% of the GDP, which was 4.3% lower than the quarter before.

African, Latin American and Asian countries were the main contributors to India’s growth in exports, and the signing of the FTA and CECA with Asian nations will help raise Asia’s share of the exports to 55% by the year 2014.

“The strategy of diversification in terms of both products as well as markets has paved the way for growth on a long-term basis, as demand from developed countries remained sluggish”, said Chief Economist of Yes Bank Shubhada Rao. “We do expect to achieve $290 billion exports in this financial year”, he went on to say.

Source : newstonight.net