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.