The momentum in India''s merchandise exports continues
unabated, reaching a level of $89.5 billion in the period
April-December, 2006, marking a year-on-year rise of 36.3
per cent. This compares to a healthy rate of 23.4 per
cent in the period 2005-06, which had earned the country
foreign exchange worth $100 billion.
This
rate of growth allows the country to maintain its share
of 1 per cent in world merchandise exports during the
first eight months of 2006. This level was attained in
2005 after it had remained unchanged at 0.8 per cent in
2003 and 2004. The target aimed at by the country''s financial
planners for 2009 is 1.5 per cent of world exports.
The
survey says that imports, which grew by 36.3 per cent
in April-December, 2006, rose mainly because of a substantial
rise in POL imports, up by 39.2 per cent on the back of
high crude oil prices. Interestingly, the survey points
out, non-oil import growth decelerated to a moderate 18.7
per cent in first nine months of the current year, primarily
because of a decline in import of gold and silver in first
few months of 2006. This fall was mainly due to high bullion
prices prevailing at the time.
According
to the survey, India''s significant export growth in recent
years has come on the back of a host of favourable external
developments as well as domestic policy initiatives. Improved
global growth and recovery in world trade, it says, aided
the growth of Indian exports on the external front. Domestically,
it points out, a buoyant economy, and significant moves
towards corporate restructuring, enhanced the competitiveness
of Indian industry.
An
added factor aiding exports was the new-found resurgence
in the
manufacturing sector, along with sustained demand from
major trading partners. "Trade policy reforms, continued
trade promotion, market diversification and trade facilitation
efforts seem to have paid good dividends", the survey
notes.
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