Exports to get boost by improving world trade: RBI.

Despite concerns about protectionism as a response to the global crisis, the recovery in world trade projected for 2010 would improve the export prospects for India, the Reserve Bank said.

Since October 2009, export growth has turned around and it averaged at 20.5 per cent between November 2009 and February 2010, the apex bank said.

"The increase in exports has coincided with the uptrend in world commodity prices as well as the recovery in the global economy," the RBI said in its Macroeconomic and Monetary Developments in 2009-10, released in Mumbai on Monday.

Cumulatively, exports during April-February 2009-10 registered a decline of 11.4 per cent as against a growth of 18.2 per cent a year ago, it said.

Manufactured goods continued to maintain their largest share (69.4 per cent), followed by petroleum and primary products. The share of manufactured goods increased along with decline in the shares of petroleum and primary products.

During April-September 2009, the exports of all major commodity groups declined. Destination-wise, developing countries and OECD countries were the major markets for India's exports, accounting for 37.9 per cent and 36.6 per cent, respectively, the RBI said.

The UAE was the largest destination for exports followed by the US, China, Singapore, Hong Kong and the UK. "Exports to all major export destinations declined during the period," the RBI said.

Source : profit.ndtv.com