The Hindu Business Line : Five commodities drive exports 26 pc in April-February

THE country's export growth of 26 per cent exceeding $70 billion in the first eleven months of the 2004-05 owed itself partly to the incredible ascent and buoyant growth of just five commodities accounting for a share of close to 41 per cent in the total trade.

Petroleum, crude and products, gem and jewellery, machinery and instruments, drugs, pharmaceuticals and fine chemicals and readymade garments (RMG) cotton, including accessories, have emerged as the big-ticket items of exports.

Disaggregated trade data based on provisional figures of DGCI&S, Kolkata, and gleaned by the Economic Division of the Commerce Department show that gem and jewellery with a weight of 17.02 per cent in total exports notched up a growth of 28.85 per cent during April 2004 to February 2005 at $11,976.90 million against $9,295.04 million in the corresponding months of 2003-04.

Though export of petroleum, crude and products accounts for a share of 8.80 per cent in aggregate exports, this product group logged a whopping 90.52 per cent growth at $6,195.23 million during the period under review against $3,251.78 million in the corresponding months of 2003-04.

Export of machinery and instruments (4.25 per cent) grew 21.26 per cent during the period under review at $2,988.74 million ($2,464.80 million), while that of drugs, pharmaceuticals and fine chemicals (4.65 per cent) grew by 13.18 per cent at $3,269.04 million ($2888.43 million).

RMG cotton, including accessories, (5.80 per cent) however registered a decline of 2.67 per cent at $4,081.40 million ($4,193.34 million).

Export of agriculture and allied products (7.49 per cent) notched up a growth of 12.75 per cent at $5,267.77 million against $4,671.97 million, while that of chemicals and related products (16.04 per cent) posted 30.69 per cent growth at $11,286.10 million against $8,635.81 million.

A particularly worrisome feature in an otherwise optimistic export show during the period under review is the tepid export performance of textiles sector even as it accounts for a weight of 15.37 per cent in total exports. Thus textiles exports grew by a meagre 0.46 per cent during April-February 2004-05 at $10,816.82 million against $10,767.37 million.

Destination-wise, India's exports continue to be accounted for substantially by Asia and Oceania as this region absorbs as much as 47.01 per cent of aggregate Indian exports. During April-February 2004-05, exports to Asia and Oceania grew by close to 28 per cent at $33,073.24 million ($25,877.78 million) and that to Western Europe, which absorbs 23.92 per cent of India's exports, grew by 22.06 per cent at $16,831.55 million ($13,789.18 million).

Exports to the Americas (20.72 per cent) went up by 23.30 per cent at $14,581.53 million, against $11,826.27 million. Though exports to the Latin American region account for a tiny share of 2.65 per cent, exports to this region marked 84 per cent growth at $1,867.73 million ($1,013.04 million).

Overall, India's exports during the first eleven months of the 2004-05 fiscal grew by 25.80 per cent at $70,360.49 million ($55,932.47 million).

On the import front, the top five commodities accounting for close to 62 per cent of the total imports are gold; petroleum, crude and products; machinery except electric and electronic; electronic goods; and pearls, precious and semi-precious stones. Import of petroleum, crude and products, with a share of 28 per cent in total imports, grew by 44.13 per cent at $26,565.12 million, against $18,430.93 million, while that of electronic goods (9.13 per cent) was up by 30.59 per cent at $8,714.40 million, against $6,672.91 million.

Import of gold with a share of 9.86 per cent in total imports was up by 64.08 per cent at $9,414.91 million against $5,738.01 million, while machinery import excluding electric and electronics (6.02 per cent) posted a growth of 35.83 per cent at $5,747.89 million, against $6,672.91 million. Import of pearl, precious and semi-precious stones was up by 28 per cent at $8312.04 million, against $6,502.41 million.

A notable feature is that bulk imports with a weight of 38.93 per cent did exceedingly well by registering a growth of 41.66 per cent at $37,166.01 million ($26,236.88 million). Destination-wise, the bulk of India's imports are sourced from Asia and Oceania as this region accounts for a share of 35.26 per cent in the country's aggregate imports.

During this period, import from this region grew by 38.80 per cent at $33,664.67 million against $24,254.79 million. Import from West Europe (22.82 per cent) was up by 29.50 per cent at $21,789.38 million against $16,826.12 million.

Import from the Americas (8.32 per cent) was up by 26.46 per cent at $7,947.54 million against $6,284.42 million.

By far the highest import growth emanated from East Europe, which recorded a growth of 101.88 per cent at $165.08 million against $81.77 million, even as this region accounts for a paltry 0.17 per cent share in total import of India.

Overall, India's imports during the first 11 months of 2004-05 were up 36.14 per cent at $95,466.39 million ($70,122.32 million).

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