Financial Daily from THE HINDU group of publications
Saturday, Jan 12, 2002
Industry & Economy
Capexil lists hurdles on export front
KOLKATA, Jan. 11
REVIEWING its product-specific export performance during the first seven months of the current fiscal, Capexil has listed three factors besides the recession in US that may affect the trend of export growth in the remaining period of the year.
These are a clear narrowing of world demand, stiff competition from China and growth of regional trade.
During the April-October period, the overall export of Capexil's products, broadly falling under minerals and non-minerals (excluding footwear), recorded a marginal increase of 4.20 per cent at Rs 8,380 crore (Rs 8,041 crore).
In the first five months, till August 2001, a healthy growth of 31 per cent at Rs 5,529 crore was achieved, but post-September 11, a perceptible slowdown had occurred.
On the outlook for the remaining months, Mr S.K. Ray, Executive Director of the council, said that despite a demand recession, the performance of Capexil's products in Latin America, Africa and East Europe, on an average, might be better than last year.
The council is already in the process of preparing a product-specific export strategy, especially for Latin American countries, in consultation with trade and industry.
Besides taking up a new project to cater to the needs of exporters from the North-East, the council has already launched an exclusive B2B portal, particularly for exporters of minerals, glass and glassware, rubber products and ceramics.
The product line under Capexil contributes to around seven per cent of the country's overall exports.Of the 16 Capexil export panels, 15 recorded an increase in export in rupee terms in 2000-2001, compared to 1999-2000.
The top six buyers of the council's products are Japan (14 per cent), the US (14 per cent), China (11 per cent), Singapore (six per cent), South Korea (five per cent) and Bangladesh (four per cent).
The minerals sector showed a growth of nearly nine per cent during the April-October period, at Rs 4,768 crore (Rs 4,383 crore), led by granite and allied products (Rs 1,485 crore). The non-mineral sector recorded a slightly negative growth of 1.30 per cent at Rs 3,612 crore (Rs 3,658 crore).
The total export of the council's products during 2000-2001 was Rs 14,838.70 crore ($3.25 billion), as against Rs 10,968 crore ($2.53 billion) achieved during the previous year. This is a growth of 35 per cent in rupee terms and 28 per cent in dollar terms.
While minerals and ore accounted for Rs 8,335.1 crore, non-mineral exports clocked Rs 6,503.6 crore.The target for the current year has been set at Rs 16,385 crore, with minerals and ore estimated to fetch Rs 9,000 crore and non-minerals, excluding footwear, Rs 7,385 crore.
Major growth has been recorded in bulk minerals, ceramics and allied products, and graphite products.
More specifically, all kinds of stones, calcined alumina, iron ores, auto tyres and tubes, cement, paper and paper board including printing and writing paper, and graphite products are said to be showing good prospects.
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