Ahmedabad: After remaining subdued for more than a year because of the global economic downturn, Gujarat's economy seems to have cast off the recession blues. The signs of recovery are palpable. Figures show that not only has the trend of decline in exports and imports been arrested but, as figures indicate, both are on the rise.
Figures received from the Container Corporation of India's inland container depot in Ahmedabad show that exports from the state have again started growing. The data is indicative of a revival in foreign markets, but it also shows the strength of the state's economy.
Exports from the depot were low till September but started growing from October. They increased more than 18% in October and over 35% in November on a year-on-year basis.
The city led the exports rally of the state. Textiles, chemicals, gems and jewellery, engineering goods, food items, and pharmaceuticals are the major items exported from Gujarat, with Europe and the US being the principal export destinations.While the exact figures are not available, textile industry experts in Surat said that textile exports from the city had gone up significantly compared to last year.
"Export orders had totally dried up last year because of the global meltdown, particularly from the US and Europe. But things have improved and textile exports have started rising of late," said Ravindra Arya, a Surat-based textile manufacturer and exporter.
Exports of cut and polished diamonds -- the majority of which are processed in Surat, Ahmedabad, Bhavnagar, Rajkot and a few other places in the state -- have also started increasing. In fact, diamond exports more than doubled in November.(Maulik Buch
contributed to this report from Vadodara).
This was also the first time after more than a year that the overall exports of the gems and jewellery sector showed positive growth. "The diamond-cutting sector has recovered from the slowdown because of the improved demand in the US and other key markets. We expect the sector to touch new highs in the coming months," said Chandrakant Sanghavi, the regional chairman of the Gem & Jewellery Export Promotion Council.Industries located in and around Vadodara also report an increase in enquiries and export orders.
"There has been a significant increase in enquiries and export orders," said Kashyap Antani, executive secretary of Vadodara Chamber of Commerce and Industries (VCCI). "Most of the export orders come from European and African countries. About 40 industries who are members of the VCCI have received orders and enquiries from these
continents."
Antani further said that the export ratio in the last two years was about 38% but industries were now expecting this to go up.
Vadodara-based pharmaceutical and engineering products industries have successfully fended off the challenge from Chinese manufacturers. These sectors demand high production standards and highly-skilled workers. Evidently, the Chinese have been unable to match Vadodara industries in these two sectors.
Container imports through the inland container depot in Ahmedabad have also started rising. They had showed negative growth till March but have steadily risen from April onwards. Experts say the rise in imports show the vibrancy of the state's economy and indicate a strong recovery. "The economy of Gujarat is recovering rapidly. Imports reflect the demand of domestic companies," said Jyotindra Kothari, the president of Exim Club, Ahmedabad chapter. "Rising imports show that companies in Gujarat want to produce more to meet higher demand. In the first months of the year, demand had become feeble."
Source : dnaindia.com