May exports jump 35 pc; European crisis may affect demand

New Delhi, July 1 (PTI) India's exports rose 35.1 per
cent in May to USD 16.1 billion year-on-year, but the trouble
brewing in some European economies may weigh on future demand.
The seventh straight month of rise was registered on a
low export base of USD 11.95 billion in May 2009, when
shipments had plunged by over 29 per cent from the previous
fiscal under the impact of the recession in the US and several
other advanced economies.
For the April-May 2010-11 period, exports grew by 35.7
per cent to USD 33 billion against the year-ago period,
according to official data released on Thursday.
President of the Federation of Indian Export
Organisations A Sakthivel said that the crisis in some
European countries is a cause for concern.
"We hope the growth trend will continue but the only
worrying aspect is the crisis in the eruo zone, which is
likely to affect India's exports in that area," he said.
He also said the depreciation of euro would provide
fierce competition to Indian products in countries where they
are facing competition from Euro nations. The Euro has
depreciated by about 17.5 per cent against the rupee since
November last year.
Of the USD 176.50 billion exports last fiscal, Europe
accounted for 23 per cent.
Ministry officials said that labour-intensive sectors
like engineering, gems and jewellery, leather and man-made
fibres have registered healthy growth rates in May.
Imports also surged 38.5 per cent in May to USD 27.4
per cent, indicating a rapid pace of domestic economic
activity and leading to a trade gap of USD 11.29 billion
during the month under review.
Imports during the first two months of this fiscal grew
40.9 per cent to USD 54.7 billion against USD 38.85 billion in
the same period last year.
Oil imports in May were valued at USD 8.8 billion while
the non-oil import bill was about USD 18.6 billion. PTI