The Hindu Business Line : Traditional items prop up export growth

THE 11 per cent export growth achieved during the first seven months of the current fiscal owed itself largely to robust performance by traditional export items such as gem and jewellery, chemicals and related products and engineering goods, which together constitute half of the country's aggregate exports.

Unpublished foreign trade data based on provisional data of the Directorate-General of Commercial Intelligence & Statistics (DGCI&S) Kolkata, and compiled by the Economic Division of the Commerce Ministry show that engineering goods export performance appeared to be the best as it logged a rate of growth of 29.42 per cent at $5330.14 million during April-October 2003, as compared to $4118.39 million in the corresponding months of 2002, accounting for a weight of 16.18 per cent.

Chemicals and related products with a weight of 15.80 per cent registered a growth of 17.70 per cent at $5204.22 million, against $4421.53 million in the corresponding months of 2002, while gems and jewellery with a weight of 18.44 per cent posted a growth rate of 11.39 per cent at $6073.31 million, against $5452.19 million in the corresponding period of 2002. Textiles, another important export item accounting for 18.71 per cent of the country's aggregate export, however, put up a dismal performance by notching up a negative 3.60 per cent growth at $6161.73 million, against $6391.60 million in the corresponding months of 2002-03.

Agriculture and allied products (7.68 per cent) logged a modest 4.04 per cent growth during April-October 2003 at $2528.40 million, against $2429.67 million in the corresponding months of 2002.

Surprisingly, petroleum products which account for a relatively meagre share of 5.86 per cent in total exports notched up the highest growth rate of 35.93 per cent during the period under review at $1928.75 million, against $1418.97 million in the corresponding months of 2002.

Marine products and leather and manufactures, the two important traditional export items, fared badly registering a negative and measly growth respectively during the period under review.

Overall, exports during April to October 2003 amounted to $32938.79 million, against $29773.43 million in the corresponding months of 2002, posting a growth rate of 19.63 per cent.

Destination-wise, India's exports to West Europe accounting for a quarter share in total exports, performed well by registering a growth rate of 18.22 per cent during the period under review at $8205.21 million, against $7059.86 million in the corresponding months of 2002.

Exports to Asia and Oceania, which has emerged by far the biggest region absorbing Indian exports by accounting for a huge 43.44 per cent in aggregate exports, notched up a relatively wholesome growth of 14.51 per cent at $14309.12 million, against $12495.83 million.

Exports to the America, which account for a share of 22.49 per cent in total exports, posted a growth of 3.54 per cent at $7406.98 million, against $7678.80 million. Though Africa accounts for a share of 6.24 per cent in India's exports, the region performed well by recording a growth rate of 25.46 per cent at $2054.63 million, against $1637.55 million.

On the import front, bulk imports, which account for a share of 38.32 per cent in total imports, registered a growth of 16.40 per cent during April-October 2003 at $15983.93 million, as compared to $13731.49 million.

Import of petroleum crude and products, which account for the next big share of 26.38 per cent, posted a modest 7.83 growth during the period under review at $11002.05 million, against $10203.57 million.

Machinery imports (9.81 per cent) logged a hefty growth of 35.89 per cent at $4093.16 million, against $3012.01 million.

As inflation is creeping, import of gold and silver as a hedge against hard time naturally assumes importance. This is reflected in the spectacular spurt in import of gold and silver (weight: 9.43 per cent) grew by a whopping 53.23 per cent at $3932.20 million during the period under review, against $2566.13 million.

Overall imports during the period under review grew by 22.05 per cent at $41708.52 million, against $34173.30 million.

Destinationwise, India's imports from West Europe accounting for a share of 23.86 per cent grew by 17.65 per cent at $9952.05 million, against $8458.71 million.

Imports from Asia and Oceania (32.86 per cent) grew by a massive 43.02 per cent at $13707.34 million, against $9584.15 million.

Import from the Americas accounting for a share of 9.26 per cent in total imports grew by a relatively high rate of 19.67 per cent at $3863.29 million, against $3228.23 million.

Import from Africa (5.16 per cent) grew by a moderate 8.56 per cent at $2152.56 million, against $1982.89 million.