An inquiry by the Commerce Ministry has found that exports to the commonly known tax havens have increased from the 2004-05 level. The peak was reached over the seven year-period ending 2010-11 (Table).

The Minister for Commerce, Textiles and Industry, Mr Anand Sharma, told Business Line that, “After certain media reports, I asked for details (from the Commerce Department). From our side, we have checked the numbers on exports to tax havens and verified them.”

Exports to Bahamas increased from just $5.55 million in 2004-05 to a whopping $2.17 billion in 2010-11. Of the $2.17 billion, exports of petroleum products alone accounted for $1.986 billion.

The Minister added, “An abrupt increase was seen only in the case of Bahamas. It was mainly on account of petroleum products. There must have been a surge in demand for such items. Besides, oil prices have also gone up.”

The other main items of shipments to Bahamas in 2010-11 were organo-inorganic compounds ($32.56 million), some organic compounds ($87 million), vegetable alkaloids ($31.38 million), motor vehicles ($0.27 million) and tobacco products ($0.17 million).

Commerce Ministry data show that exports to Mauritius had increased from $258.2 million in 2004-05 to a maximum of $1.089 billion in 2007-08 and then decreased to $801.56 million in 2010-11.

Exports to Panama Republic grew from $55.95 million in 2004-05 to a peak of $165.6 million in 2006-07 and then slipped to $117.84 million in 2010-11.

Similarly, exports to Seychelles which were $10.62 million in 2004-05 grew to a maximum of $97.43 million in 2008-09 and then fell to $31.15 million in 2010-11.

Also, shipments to Switzerland were $540.89 million in 2004-05, peaking at $769.24 million in 2008-09 and then dropping to $677.56 million in 2010-11.

Exports to Luxembourg have risen from $11.64 million in 2005-05 to a maximum of $18.64 million in 2010-11.

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