New Delhi, Feb. 1 Indicating economic recovery and demand pick-up in markets abroad, merchandise exports remained in the positive territory for the second consecutive month with shipments in December 2009 registering a 9.3 per cent growth to $14.6 billion from $13.37 billion during December 2008.
Reflecting the revival of local manufacturing sectors and investment activities, merchandise imports - that includes non-oil items comprising capital goods - also turned positive for the first time in 12 months in December 2009, growing by 27.2 per cent to $24.75 billion from $19.45 billion in December 2008, according to the data released on Monday by the Commerce and Industry Ministry.
Meanwhile, in another positive sign, the HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 companies, showed that the manufacturing sector registered its fastest growth in over a year thanks to new export orders.
But cumulative exports during April-December 2009 were still in the red registering a negative growth of 20.3 per cent to $117.59 billion from $147.57 billion over the same period last year.
Exports had grown by 18.2 per cent in November after contracting for 13 consecutive months following the global financial crisis.
Plea to continue stimulus
Mr A Sakthivel, President, Federation of Indian Export Organisations said, “The stimulus provided for exports should continue till export stabilises as it is not certain if the huge stimulus-induced growth in most economies will continue once those measures are withdrawn.”
He said micro, small and medium (MSME) exporters should be given credit at cheaper rates as interest rates in the country are much above the international benchmark for MSME exporters making Indian MSME exporters' products non-competitive.
The Prime Minister's Economic Advisory Council Member, Dr Saumitra Chaudhuri, told Business Line that instead of clamouring for sops, exporters must show greater resilience and diversify more into growing non-traditional markets such as Asia and Latin America with competitively priced products that cater to the demand there.
“More incentives cannot help in increasing demand in markets abroad. No social objective will be served by giving exporters subsidies and credit at lower interest rates as domestic citizens will have to bear the cost of such measures. Exporters have to do well on their own merit. The Government can address the infrastructural constraints including power shortage and bad roads,” he said.
Non-oil imports jumped 22.4 per cent in December 2009 to $18.21 billion from $14.88 billion in December 2008. Oil imports during December 2009 were $6.53 billion, 42.8 per cent higher than $4.58 billion in the corresponding period last year. This is the second consecutive month that oil imports have registered growth. A good portion of the total imports are then exported.
Imports for April-December 2009 were $193.83 billion as against $253.81 billion in April-December 2008, down 23.6 per cent. In this, non-oil imports during April-December 2009 were $136.91 billion, 20.7 per cent lower than $172.71 billion in April-December 2008. Oil imports during April-December 2009 were $56.92 billion ($81.1 billion), down 29.8 per cent.
The trade deficit for April-December 2009 was $76.24 billion, lower than $106.24 billion during April-December 2008.
Source : Business Line