India’s exports registered a 26.8% growth during November 2010 at $18.9 billion, rekindling hopes that the $200-billion target fixed for the current fiscal year is likely to be crossed. Total shipments may even touch $215 billion during the full year.
Imports during the month were valued at $ 27.8 billion, up 11.2%. Sustaining high growth rates would also depend on the pace of recovery in major European economies.
A sizable percentage of Indian exports are destined towards Europe. During the April-November period, exports reached $140.3 billion, clocking a growth of 26.7%, while imports grew 24.0% to $222.0 billion. Trade deficit stood at $81.6 billion and on current trends the year-end trade deficit could stand at $120.0 billion.
Commerce secretary Rahul Khullar has said that India's merchandise exports would be around $210-215 billion in the current fiscal year.
The continuous increase in the trade deficit is worrisome and the government should devise a strategy to further accelerate exports, said Ramu S Deora, president, Federation of Indian Export Organisations. India’s exports profile is undergoing a sea change and new emerging sectors such as engineering, petroleum, pharmaceuticals and chemicals are now dominating the export segment, Deora said.