Industry hails spectacular merchandise export growth in March

According to the recently released trade data by the Department of Commerce, merchandise exports have grown at an impressive rate of 54% in March 2010 to US$19.9 billion, recording the fastest growth pace since March 2004. However, the overall value of exports for 2009-10 dropped by 4.7% to US$176.5 billion due to the global economic downturn.

Merchandise export basket of India is largely dominated by products manufactured by MSMEs in the country. Therefore, the jump in March merchandise export figures has spelled good news for small enterprises.

While speaking to reporters, Anand Sharma, Union commerce and industry minister, stated, "Sluggish demand in key Western export markets during the financial crisis has led to the fall in overall exports from India during the last financial year, but merchandise exports have been able to clock better performance."

Growth in merchandise exports despite the fall in overall value of exports has been hailed by A Sakthivel, president of the Federation of Indian Export Organisations (FIEO).

"Although the export figure for 2009-10 is much better than what the industry expected, there is still a need to undertake sector-specific measures for some crucial employment generating and economically significant industries such as readymade garments, cotton textiles, engineering goods, handicrafts, carpets and electronic products, among others," said Mr Sakthivel.

Going by the good performance recorded by Indian exporters in 2009-10, FIEO chief shares an optimistic view as that held by the commerce and industry minister with regard to achieving the set export target of US$200 billion in 2010-11.

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