The country’s exports grew 11.5 per cent in January, recording a positive growth for the third successive month and triggering hopes that the worst might be over.
Overseas shipments touched $14.34 billion in January against $12.9 billion in the same month last year, official trade data released on Monday showed.
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 global meltdown, causing widespread unemployment and changing consumer-spending patterns.
Last year, the government had unveiled a mix of procedural measures and fiscal incentives for trade with non-traditional destinations such as Latin American and African countries. At present, over 55 per cent of the country’s exports are destined for Europe and the US, regions worst hit by the global credit crisis.
Imports clocked a positive growth for the second straight month after failing for 11 months in a row since December 2008.
Inward shipments rose 35.5 per cent to $24.70 billion in January from $18.22 billion in the same period last year.
In Budget 2010-11, Finance Minister Pranab Mukherjee has proposed to extend the subsidised bank credit for select exporters for one more year till March 31, 2011.