Saturday, April 17, 2004
India's exports rise 17% to $61.8 bn in 2003-04
Reuters New Delhi, April 17
Indian exports shrugged off the impact of a rising rupee and crossed the 12 per cent annual growth target to rise to $61.84 billion in the fiscal year ended March 2004.
Government data released on Saturday showed exports in 2003-04 were 17.26 per cent higher at $61.84 billion from $52.74 billion logged in the previous year, thanks to a global economic recovery and large orders from its key market, the United States.
"Export growth has been very strong. Despite complaints from exporters about a rising rupee they have grown at a robust pace," said economist at Mumbai-based ICICI Securities, Sanjeet Singh.
The Government had set a modest 12 per cent growth target for 2003-04 keeping in view a sluggish global economy and the rising rupee against the US dollar.
The rupee has gained about four per cent against the dollar since January on robust foreign investments in one of the world's fastest growing economies. Analysts say it is overvalued by nearly four per cent on a real effective exchange rate.
RUPEE RISE
The rupee ended Friday at 43.8850/8950 a dollar, bouncing up from a session low of 43.9950 and Thursday's close of 43.9800/9900.
Reflecting strong economic growth, the trade deficit in 2003-04 nearly doubled to $13.37 billion from $7.45 billion in the year-ago period.
The Indian economy, Asia's third-largest, is expected to grow more than eight per cent in the year ended March 2004 on the back of the best monsoon rains in a decade, placing it in the ranks of the world's fastest growing economies.
India has a meagre 0.67 per cent share of world trade and aims to capture a one per cent share by 2007 in an effort to catch up with its Asian rival China.
Earlier this year, the Government had announced a string of measures to boost exports which account for nearly 10 per cent of India's gross domestic product.
"I expect exports and non-oil imports to continue to grow in the coming months as the economy expands," said Singh.
Mirroring strong domestic demand, non-oil imports in 2003-04 rose 29.38 per cent to $55.04 billion from $42.54 billion in the previous year.
Oil imports rose 14.29 per cent to $20.17 billion in 2003-04 from $17.65 billion in the previous year.
© Hindustan Times Ltd. 2004.