NEW DELHI: India’s exports sector has bounced back with outward trade growing by 18% in November 2009, the commerce ministry said. The export
figures turned positive after staying in the red for 13 months.
The value of exports in November 2009 jumped to $13.19 billion compared to $11.16 billion in November 2008. The global economic slowdown hit the country’s exports sector hard in October 2008.
Imports of goods and services, however, remained in negative territory during this period. But the contraction was lower at 2.6%—amounting to $22.8 billion—compared to 15% in the previous month.
The cumulative data for April-November of the current fiscal showed exports dropping by 22.3% to $104.24 billion, much lower than the 26% fall up to October this financial year. Trade deficit for April-November 2009 stood at $66.18 billion, lower than $100.15 billion in the same period in 2008.
As per official data, oil imports also turned positive after 13 months and increased by 7.3% to $6.38 billion in November. Imports during April-November 2009 stood at $50.18 billion, 34.4% lower than $76.52 billion in the year-ago period.
Non-oil imports during November contracted by 5.9% to $16.5 billion from $17.5 billion in the same month of 2008. Non-oil imports were 23.8% lower at $120.2 billion in April-November 2009 compared to $157.8 billion in the corresponding period of 2008.
While exports have turned positive partly due to the low base effect of 2008, experts cautioned against complacency. “Exporters need to keep their competitiveness both in terms of quality and prices, and focus on market and product diversification,” said Indian Institute of Foreign Trade’s RM Joshi.
India’s apex exporters’ body, the Federation of Indian Export Organisations (FIEO), said the November data indicates the adaptability of exporters to the changing global economy and the positive impact of the stimulus extended by the government. FIEO president A Sakthivel hoped that the government would continue with the stimulus package, particularly, interest subsidy for exports.
Despite the positive growth, the country’s overseas shipments in the current fiscal are likely to remain much lower than the $185 billion worth of shipments last year. As per FIEO estimates, exports in 2009-10 are expected to remain in the range of $165-170 billion.