New Delhi: India`s exports grew over 18 percent to touch USD 13.2 billion in November, reversing the
downtrend seen in the past 13 months in a row due to shrinking
in demand in major western markets.
However, these are early days to rejoice because the
growth is attributed to base effect. "There is no great shift
in demand, it (growth) is because of base effect," Commerce
Secretary Rahul Khullar told reporters here.
Expressing happiness that exports have turned around,
Federation of Indian Export Organisations (FIE)) said the
turnaround is an "indication of exporters` resilience and
positive impact of the stimulus extended by the government",
FIEO President A Shakthivel said.
He hoped that government would continue with the
"interest subvention (subsidy) for exports as interest rates
are set to move northward".
Gems and jewellery grew over 40 per cent to USD 2.15
billion in the month under study. Readymade garment shipments
grew to USD 727 million from USD 686 million in the same month
a year ago. Man-made fibre and petroleum products also
contributed to the turnaround story.
However for April-November period of the fiscal, exports
dropped to 104.25 billion dollars from 134.2 billion dollars
in the same period a year ago.
Exports started falling in October last year following
deepening of global financial crisis post-Lehman collapse.
This coupled with recession in developed markets saw India`s
exports taking a severe beating.
The impact of falling demand felt the maximum in May this
with exports declining a steep 39 percent.
However, October figures had given some indications that
falling trend could be halted soon. Though exports fell in
October as well, pace of decline slowed down to single digit
at 6.6 percent, which was also attributed to base effect.
Analysts had said there was an uptick in revival of some
demand in the overseas markets and hoped that the forthcoming
Christmas festivities would further push Indian exports. The
US and other major markets coming out of the recession in
July-September quarter also augured well, they had said.