Exports cross $200 billion mark in Feb

Image: Workers load bags of nickel ore.
Photographs: Yusuf Ahmad/Reuters

India's exports grew by an impressive 50 per cent in February, crossing the $200 billion mark during the first eleven months of 2010-11 on the back of rising demand from the US and other markets.

Exports went up by 49.7 per cent year-on-year during February to $23.5 billion, taking the April-February 2010-11 figure to $208.2 billion, an increase of 31.4 per cent over the year-ago period and past the yearly target of $200 billion.

Imports also increased by 21.2 per cent in the month under review to $31.7 billion, leaving a trade deficit of $8.1 billion, according to the Commerce Ministry data released on Friday.

Exports cross $200 billion mark in Feb

Image: A worker prepares fresh roses for export.
Photographs: Thomas Mukoya/Reuters

During April-February 2010-11, imports grew by 18 per cent to $305.3 billion over the same period last year.

The trade gap for the period stood at $97 billion.

The exporting sectors which performed well during the 11 months of fiscal include engineering (81 per cent), petroleum and oil lubricants (34 per cent), cotton yarn and made-ups (43 per cent), chemicals (22 per cent) and electronics (40 per cent).

Exports cross $200 billion mark in Feb

Image: An employee works inside a ceiling-fan parts manufacturing factory.
Photographs: Rupak De Chowdhuri/Reuters

"The growth which we are seeing is basically from the markets of Asia, Latin America and Africa. In these new markets demand for our products are increasing," Ramu Deora, the President of India's apex exporters body FIEO, said.

However, Deora said that demand is still weak in several European markets.

The US and Europe were the traditional markets for Indian exporters, but after the global economic crisis, exporters increased their engagement in new markets of Asia, Latin America and Africa.

Exports cross $200 billion mark in Feb

Image: Containers can be seen stacked behind imported Buick cars.
Photographs: David Gray/Reuters

The government is providing duty incentives to exporters for these new markets.

Commerce Secretary Rahul Khullar had said that going by this trend, the country's exports are expected to touch the figures of $230-235 billion. Imports may end up to $350 billion and balance of trade to $105-115 billion by the end of 2010-11.

Oil imports in February dipped by 0.3 per cent to $8.21 billion from $8.24 billion in February 2010.

However, non-oil imports grew by 31 per cent to $23.48 billion from $17.9 billion.

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