Macroeconomic Indicators - Indian Exports Surged By 34pct in April.

Dr Rahul Khullar India's commerce secretary said that the financial year 2011-12 opened with 34.4% YoY growth in exports to USD 23.9 billion in April 2011, but it is not going to be an easy summer for exporters.

Imports grew at a lesser pace of 14.1% to USD 32.8 billion, leaving a trade gap of USD 8.9 billion for April 2011. The country's exports for 2010-11 had aggregated USD 246 billion, a growth of 37.55%.

The April performance was led by the engineering goods sector, with exports growing by 109% to USD 6.8 billion. Export of petroleum products grew by 53% to USD 4.3 billion and gems and jewellery by 39% to USD 2.9 billion. Readymade garments clocked in a 12.7% growth at USD 1.1 billion.

However, a few sectors like iron ore, fruits and vegetables, marine products and tobacco showed a decline. The petroleum, oil and lubricants segment topped the import basket, growing by 7.7% to USD 10.2 billion for April 2011.

Other major imports were gold and silver at USD 4.5 billion (60% growth), electronic goods USD 2.1 billion (36%) and pearls and stones USD 2.7 billion (19%).

According to Dr Khullar, the uncertainty in Europe and not too encouraging data on the US economy remain areas of concern. He said that "I still remain far from sanguine that 2011 will be a good year it is not going to be an easy summer."

On Europe, he said, everybody is worried because the debt restructuring in some economies will have a domino effect on others. He added that "Until clarity emerges, we will all live in some degree of uncertainty."

On exporters' fears about the termination of the duty entitlement pass book scheme, Dr Khullar pointed out that the huge growth in merchandise trade had come about not just because of DEPB. It was the usual habit of exporters to complain whenever a subsidy scheme was about to end.

Source : steelguru.com