India’s Exports Up 27% Over 2009

October 26, 2010 Posted by India Briefing Reading Time: < 1 minute

Oct. 26 – Indian exports totaled US$103.3 billion in the April-September period, marking a 27.6 percent increase over the same period last year. Meanwhile, the country’s merchandise shipments rose at their fastest rate in two years, surging 23 percent, or about US$18 billion, in September.

Imports have also surged over the same time frame and have outpaced exports to stir concerns over a widening trade gap.

India’s Commerce Secretary Rahul Khullar said the growth could be partly attributed to inflation and a low base in 2008. He said September was the “first month in which exports were higher than (for a particular month) 2008-09.”

Exports had recorded a 22.5 percent growth in August at US$16.64 billion. Imports too jumped by a higher rate of 32.2 percent to US$29.7 billion, resulting in a trade deficit of US$13.06 billion.

Commerce Minister Anand Sharma said on Monday that the country is on track to surpass the nation’s export target of US$200 billion for the current fiscal.

“In the first six months of this year, we have done well. We are very much on track…to cross US$200 billion,” Sharma said.

“India is becoming increasing competitive on global markets for consumer products, and a tectonic shift to purchase from India rather from China, where costs are increasing, is currently underway,” Chris Devonshire-Ellis, principal of Dezan Shira & Associates, said on Tuesday.