The country's exports grew 11.5 per cent in January, recording a positive growth for the third successive month triggering hopes that the worst might be over for embattled exporters.
Overseas shipments touched $14.3 billion in January against $12.9 billion in the same month last year, Commerce and Industry Minister Anand Sharma said.
“Exports have shown recovery since October,” Sharma said. “Last three months we have moved very fast to close the gap considering exports in May 2009 contracted by 39.4 per cent.”
Shrinking world demand had affected India’s handicrafts, gems and jewellery, leather and textile exports severely in the last one year.
The downturn in exports started in mid-2008, when retail orders from the European Union and the United States crumbled due to the economic meltdown causing widespread unemployment and changing consumer spending behaviour there.
There are some sectors that still have not turned the corner.
“Engineering goods, textiles, jute, carpets, handicrafts and leather, however, continue to do very badly,” Sharma said.
Last year the government had unveiled a mix of procedural measures and fiscal incentives to trade with non-traditional destinations such as Latin American and African countries.
“A full review of stimulus will be carried out and there after we will go for a calibrated withdrawal of stimulus,” he said.
At present, over 55 per cent of the country’s exports are destined for Europe and the USA, regions worst hit by the global credit crisis.