Exports fall 4.7% in FY'10; Govt may extend sops

New Delhi, May 6 (PTI) India's exports declined 4.7 per
cent to USD 176.5 billion in 2009-10 owing to a demand vacuum
from traditional markets, setting the government thinking on
sops to sectors struggling to find buyers.
"The bad news is that exports did not come up to the
target of last year. And the good news is that we are not far
(from 2008-09 export performance)," Commerce Secretary Rahul
Khullar told reporters here.
Exports in 2008-09 was USD 185.3 billion.
Although exports have rallied for five straight months,
growing by 54.1 per cent to USD 19.9 billion in March, Khullar
said: "Exports are not yet out of the woods."
The looming economic crisis in Europe and the continued
bad performance of several sectors could have adverse impact
on overseas shipments in the coming months, Khullar cautioned.
"We will be tweaking the policy of some of the
incentives, where required, giving more support to sectors
which are still hurting and in deep red," India's Commerce and
Industry Minister Anand Sharma said.
Sectors like engineering, readymade garments, leather,
carpets, oilmeals, petroleum products and gems and jewelery,
which together account for about 70 per cent of India's
exports, either showed no growth or contraction and has become
a cause of concern for the government.
India has set an export target of USD 200 billion for the
current fiscal.
The government is conducting a sectoral review and is
likely to complete the process by July.
The country's exports fell for 13 months in a row,
starting October 2008, due to the global slump in demand.
Exports turned positive for the first time since the slowdown
in November 2009 and continues to remain in positive zone.
However, the significant increase in March is owing to a
low base impact.
Meanwhile, the imports bill for 2009-10 has been
estimated at USD 278.7 billion, down 8.2 per cent from a year
ago, leaving a trade deficit (gap between exports and imports)
of USD 102 billion.
A senior official indicated that the government may take
away incentives from the sectors which were showing growth and
distribute among those which are yet to pick up.
Khullar cautioned exporters against the impact of the
Greece debt crisis and its subsequent fallout in Europe, the
traditional market for Indian merchandise.
"It (looming crisis in Europe) was never factored in
earlier," he said, adding that the Commerce Ministry has no
further room for additional fiscal incentives. MORE PTI NKD
RDM


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