Merchandise exports are picking up but a sustained recovery in shipments of textiles, gems & jewellery and leather may take place only after June, Commerce Secretary G. K. Pillai said on Thursday. "I expect exports to stabilise in April, May and June. Thereafter there would be a recovery," he told reporters in New Delhi.
Exports will touch US$170bn in the year ending on March 31, which will be much lower than the initial target of US$200bn, mainly due to the weak performance in the last six months. Exports are estimated to have touched US$144bn until the end of January.
Exports have been declining since October as the global economic slump, especially in key trading markets like the US and EU, sapped demand for Indian products. A trade ministry official had earlier expected further decline in exports during February and March.
Pillai said today that exports of textiles, leather and gems & jewellery, which make up a large chunk of India's export basket, were showing signs of a pick up. "Textile is now stabilising. Most textile people are now saying...they are now getting orders...They are hopeful that once supplies start again fresh orders will come. So, lack of orders is slowly going away," he said.
Separately, an official in the Textile Ministry was quoted as saying today that he expected textile exports to touch US$22-23bn in the fiscal year 2009-10, almost the same as the estimate for FY09.
Source : www.indiainfoline.com