The government, plagued by grim inflation news, finally has some numbers to cheer about. India’s exports for December have registered a growth of 36.4%, the highest in 33 months, raising hopes that the country’s total exports for the current fiscal will cross the set target of $200 billion and touch $215-225 billion.
Exports in December 2010 touched $22.5 billion, while imports contracted by 11.1% to $25.1 billion, leading to a trade deficit of $ 2.6 billion, the lowest in three years.
Exports in engineering registered a 112% growth while electronics showed an 88% increase. December exports in man-made fibres grew by 30%, yarns by 65% and drugs by 810%.
“The US markets have been pretty good, even EU markets are good,” commerce secretary Rahul Khullar said.
With the lowering of trade deficit, India’s worries on overall current account deficit would also be addressed, Khullar said.
The country’s exports in the April to December 2010 period stood at $164.7 billion, registering a growth of 29.5 %.
During the nine-month period of the current fiscal, sectors like engineering, gems & jewellery, petroleum and its products, leather and leather products, carpet, plastics and linoleum, cotton yarn, chemicals have shown significant growth.
Engineering exports registered a huge growth thanks to large orders from Latin American countries such as Columbia, Khullar said.