The Hindu Business Line : Traditional products lead export growth in first quarter

THE 22 per cent export growth in dollar terms notched up during the first quarter of the current fiscal owed itself largely to the robust performance of traditional products such as gems and jewellery, chemicals and related products and engineering goods, while the textile segment put up a meagre four per cent growth even after the end of quota regime governing global trade in this product.

Disaggregated trade data compiled by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), Kolkata, show that gems and jewellery with a weight of 16.15 per cent in total exports grew by 23.52 per cent at $3445.23 million during April to June 2005 against $2789.31 million in the corresponding first quarter of fiscal 2004.Engineering goods exports (19.22 per cent weight) put up the best show by clocking a growth of 38 per cent at $4098.34 million, against $2973.96 million. Chemicals and related products (15.25 per cent) exports were up by 15.76 per cent at $3251.39 million ($2808.78 million).

Though much hype was built around the likely pick-up in the country's textile exports after the abolition of the quota regime from January 1, 2005, the evidence of performance during the first quarter of the fiscal 2005-06 was quite contrary as exports of textiles (14.63 per cent) grew by 3.93 per cent at $3119.27 million, against $3001.19 million, with cotton and manmade textiles registering a negative growth.

A redeeming feature is the better show by readymade cotton including accessories, which with a weight of 6.33 per cent in total exports did well by logging a growth of 7.91 per cent at $1349.20 million during the period under review ($1250.35 million).

Other slow-growing segments in the export sector include agriculture and allied products, leather and manufactures, while electronic goods exports clocked a negative growth. Overall, exports during April to June 2005 amounted to $21327.34 million, against $17490.68 million in the corresponding months of 2004.

Destination-wise, the country's exports to Africa and Latin America, though account for a relatively smaller share, did exceedingly well. Even as Africa accounts for a share of 7.29 per cent of India's total exports, this market grew by 63.07 per cent at $1553.98 million during the period under review ($952.97 million). Latin America with a minuscule share of 2.97 in India's aggregate exports went up by 61.96 per cent at $634.48 million ($391.69 million).

While India's exports to West Europe (24.77 per cent share) rose by 26.04 per cent at $5283.22 million ($4191.57 million), its exports to Asia and Oceania (47.77 per cent) grew by 21.64 per cent at $10188.41 million ($8376.02 million).

On the import front, bulk imports with a weight of 40.99 per cent in total imports increased by 33.45 per cent during the period under review at $12974.05 million ($9722.35 million). Import of petroleum, crude products with a share of 29.84 per cent in total imports grew by 30.97 per cent at $9444.88 million ($7211.75 million). With a share of 9.71 per cent in imports, machinery imports recorded a rise of 56.56 per cent at $3073.94 million ($1963.45 million), reflecting the revival of manufacturing activity in the economy.

What is equally noteworthy is the sustained demand for import of gold and silver, which with a weight of 12.50 per cent in total imports logged a substantial 40.98 per cent growth at $3955.59 million ($2805.72 million). Overall, imports increased by 34.46 per cent during the first quarter. Destination-wise, India's imports from East Europe with a share of 0.31 per cent in total imports grew by 112.54 per cent at $97.48 million ($45.86 million). Imports from Russia (1.51 per cent) also went up by 87.03 per cent at $ 477.04 million ($255.06 million). Imports from West Europe (24.20 per cent) rose by 46.59 per cent at $7660.27 million ($5225.69 million), while imports from Asia and Oceania (32.88 per cent) grew by 28.45 per cent at $10405,36 million ($8100.94 million).

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