Bangalore, June 24 Exports from Karnataka increased 2.3 per cent in 2008-09, or from Rs 1.32 lakh crore in 2007-08 to Rs 1.35 lakh crore in the period under review. This is against a rise of 16.9 per cent to Rs 7.67 lakh crore in 2008-09 for the country as a whole.
Exports of electronics and computer software (ECS), which accounted for 60 per cent of the State’s exports in 2007-08, took a major hit last year. Although the figures for all of 2008-09 are not available, the sector is likely to have registered zero or negative growth.
Despite the world economic and financial crisis, the State’s exports in the last quarter of 2008-09 increased by about Rs 67,000 crore, accounting for half the year’s total exports. Even if one accepts that there is heightened business activity in the second half of a fiscal year, the rise is noteworthy in a time of economic downturn. The trend holds true even for the ECS sector.
According to the latest data from Visvevaraya Industrial Trade Centre, ECS exports during April-February 2009 stood at Rs 63,341 crore, whereas in 2007-08, the State’s ECS exports were Rs 79,518 crore. During April-December 2008, exports were Rs 32,739 crore, pointing to a pick-up in January and February.
Share in total exports
Karnataka’s exports rose 23.4 per cent in 2007-08 over 2006-07, or from Rs 1.07 lakh crore to Rs 1.32 lakh crore.
Its share in India’s exports rose from 8.2 per cent in 2001-02, when ECS accounted for 57.25 per cent of the State’s exports, to 16.2 per cent in 2007-08, when ECS accounted for three-fifth of the country’s exports.
Mr J. Crasta, Senior Vice-President and President-elect of the Federation of Karnataka Chambers of Commerce and Industry, told Business Line, “The fact that the State’s exports increased by Rs 3,000 crore in 2008-09 over 2007-08, despite the overall climate of pessimism, suggests that an economic recovery is likely towards the fourth quarter of this fiscal. Businesses have held back investments, as a result of a crisis of confidence. There is also an attempt to develop alternative markets in the developing world.” That exports have actually grown in fiscal 2009 and not reported a decline in spite of the crisis is important, he added.
In February, Nasscom said keeping in mind the global economic meltdown in the second half of the year, IT and BPO exports from India is expected to grow at 16-17 per cent in fiscal 2009.
The apex body revised its revenue estimate for the fiscal to $47 billion from its earlier forecast of $50 billion. Last financial year, Indian IT export earnings grew 29 per cent to touch $40.4 billion. Nasscom said its estimates indicate that the industry would report revenue of $60-$62 billion by fiscal 2011.
Source : Business Line