The Hindu Business Line : Traditional items propel export growth during 2004-05

THE 24.13 per cent export growth in dollar terms during 2004-05 owed itself largely to the robust performance by five traditional products — agriculture and allied products, ores and minerals, gems and jewellery, chemicals and related products and engineering goods — which together constitute a preponderant 65 per cent of the aggregate exports of the country.

Latest foreign trade data collated by the Directorate General of Commercial Intelligence & Statistics and compiled by the Economic Division of the Commerce Department for the fiscal year 2004-05 show that the country's exports touched $79,247.05 million, against $63,842.97 million in 2003-04, reflecting a growth of 24.13 per cent.

Agriculture and allied exports with a weight of 7.61 per cent in total exports posted a reasonably high growth of 11.60 per cent during 2004-05 at $6,033.94 million, against $5,406.70 million in 2003-04, while ores and minerals exports (weight 5.29 per cent) logged a growth of 77.03 per cent at $4,193.44 million, against $2,368.73 million in the previous year.

While exports of gems and jewellery (17.29 per cent) notched up a growth of 29.62 per cent at $13,705.44 million in 2004-05, against $10,573.38 million, exports of chemicals and related products registered a growth of 27.28 per cent at $12,677.21 million, against $9,960.12 million in 2003-04.

Engineering goods exports (18.41 per cent) acquitted themselves well by posting a growth of 38.71 per cent at $14,587.37 million, against $10,516.45 million in 2003-04. Textile exports with a dwindling share of 15.16 per cent in overall exports put up a tepid show by notching up a negative growth of 1.53 per cent at $12,017.46 million, against $12,2204.71 million in the previous year. The dip in exports assumes significance in the light of the fact that the quota regime in global trade in textiles and clothing ended in the final quarter of the last fiscal but this did not get reflected in any marked rise in export receipts.

Destination-wise, India's exports continued its growth story with Asia and Oceania as this region absorbed 47.41 per cent of its total exports and recorded a rate of growth of 27 per cent at $37,573.37 million in 2004-05, against $29,621.10 million in the previous year. Exports to West Europe (23.80 per cent) grew by 19.72 per cent at $18,859.10 million in 2004-05, against $15,752.10 million in the previous year, while exports to the Americas (20.42 per cent) logged a growth of 20.50 per cent at $16,181.76 million during 2004-05, against $13,428.35 million in 2003-04.

Though East Europe, Africa and Latin America account for a meagre share of India's exports, these regions displayed bullish trends by registering a reasonably higher export growth with India during 2004-05, reflecting the diversified nature of India's export efforts.

Among the top 15 countries for exports, Singapore recorded the highest growth of 79 per cent at $3,795.51 million during 2004-05, against $2,124,84 million in 2003-04, followed by China of 55 per cent at $4,586.28 million ($2,955.10 million) and the United Arab Emirates of 38 per cent at $7,098.14 million ($5,125.61 million).

On the import front, the 37 per cent growth in imports during 2004-05 saw the import bill touching $1,07,066.11 million, against $78,149.62 million during 2003-04. Bulk imports with a weight of 39.09 in aggregate imports grew by a hefty 43.03 per cent during 2004-05 at $41,851.00 million, against $29,259.46 million in 2003-04. Petroleum, crude and lubricants which account for 27.87 per cent of total import grew by a whopping 45.09 per cent at $29,844.10 million in 2004-05, against $20,569.60 million in the previous year, partly fuelled by a flare-up in world crude prices which cruised to a level of $50 per barrel.

Machinery imports with a weight of 10 per cent in total imports grew by a moderate 15.11 per cent at $10,709.87 million during 2004-05, against $9,303.90 million during 2003-04.

Equally with a share of 10.11 per cent in aggregate imports, import of gold and silver registered a rate of 57.87 per cent at $10,824.38 million during 2004-05, against $6,856.42 million in the previous year, marking a recrudescence of interest in bullion as a safe haven for investment by the public.

Destination-wise, India's imports from Asia and Oceania, which accounts for a share of 35.40 per cent in total imports, grew by close to 40 per cent at $37,899.26 million, against $27,151.41 million in the previous year. Import from West Europe (22.60 per cent) was up by 29.45 per cent at $24,194.92 million, against $18,690.45 million in 2003-04. Imports from the Americas (8.36 per cent) grew by a robust 29.18 per cent at $8,947.03 million, against $6,926.20 million in 2003-04.

Among the top 15 countries for imports, the highest growth last fiscal was logged by UAE of 122 per cent at $4,581.96 million ($2,059.85 million), followed by Switzerland of 76 per cent at $5,817.92 million ($3,312.75 million) and China of 66 per cent at $6,746.66 million ($4,053.23 million).

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