The country’s exports grew 36.2 per cent in April to $16.9 billion, recording a positive growth for the sixth successive month and triggering hopes that the worst might be over for embattled traders.
Last April, exports had contracted by more than 30 per cent as shrinking world demand 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 EU and the US crumbled due to the economic meltdown, causing widespread unemployment and changing consumer-spending behaviour.
The European debt crisis, however, could potentially hurt the recovery in India’s exports.
“We need to regularly review our strategy in view of the set back in eurozone” said A. Sakthivel, president, Federation of Indian Export Organisation.