The Hindu Business Line : Traditional products pull down H1 export growth

THE relatively moderate growth in exports during the first half of the current fiscal was largely due to negative performance by traditional products such as textiles leather and manufactures coupled with modest growth posted by agriculture and allied products and gems and jewellery.

Unpublished foreign trade data based on provisional figures of the DGCI&S, Kolkata and compiled by the Economic Division of the Commerce Ministry show that textiles with a weight of 18.77 per cent in total exports put up a dismal show of - 5.74 per cent growth at $5,149.55 million during April to September this fiscal, against $5,463.28 million in the comparable period of the previous fiscal.

While gems and jewellery (17.44 per cent weight) posted a moderate growth of 6.45 per cent at $4,785.90 million, against $4,495.73 million in the first half of 2002-03, agriculture and allied products (7.81 per cent) logged a measly 4.38 per cent growth at $2,142.28 million. Leather and manufactures (3.45 per cent) posted a growth of minus 1.13 per cent at $956.38 million, against $957.21 million.

A redeeming feature is the salutary trend in the export of engineering goods, which with a weight of 16.24 per cent logged a growth of 29.70 per cent at $4,455.37 million, against $3,435.22 million. Similarly chemicals and related products (15.83) did put on a good show by registering a growth of 16.92 per cent at $4,455.37 million, against $3,714.45 million.

Overall, the country's exports during the first half of the current fiscal amounted to $27,439.39 million, against $25,093.73 million in the corresponding period of 2002-03, registering a growth rate of 9.35 per cent.

Destination wise, Africa emerged as the single highest growth destination though this continent accounts for only 6.17 per cent in total exports. India's exports to Africa grew by 22.22 per cent during the period under review at $1,694.26 million. This was followed by exports to Asia and Oceania, which with a share of 44.01 per cent in India's exports grew by 15.13 per cent at $1,2076.66 million, against $10,489.29 million.

India's exports to West Europe (24.34 per cent) grew by 11.15 per cent at $6,678 million, against $6,006.16 million, while exports to the Americas (22.79 per cent) posted a negative growth of - 2.79 during the period under review at $6,254.66 million, against $6,434.10 million.

On the import front, bulk imports which account for a share of 38.48 per cent in total imports, posted a growth of 14.06 per cent at $13,309.83 million, against $11,668.88 million. Machinery imports, which account for 9.45 per cent of total imports, recorded a whopping 31.19 per cent growth at $3,269.91 million, against $2,492.58 million. Import of petroleum, crude and products, which account for a share of 26.64 per cent in total imports, posted a modest growth of 6.36 per cent during the first half of the current fiscal at $9,214.23 million, against $8,663.26 million.

Interestingly, import of gold and silver which account for a share of 8.94 per cent in total imports jumped by a hefty 62 per cent at $3,090.85 million, against $1,910.62 million in the corresponding months of 2002. Import of electronic goods too recorded a growth of 43.09 per cent at $3,366.97 million, against $2,353.07 million in the corresponding months of 2002.

Overall, imports grew by 21.12 per cent during the first half of the current fiscal at $34,591.65 million, against $28,560.20 million.

Destination wise, India's imports from West Europe accounting for a share of 24.16 per cent in the country's total imports went up by 17.77 per cent at $8,356.47 million, against $7,095.74 million in the corresponding months of 2002. Import from Asia and Oceania (32.20 per cent) also logged a growth of 39.70 per cent at $11,139.71 million, against $7,973.77 million. Though import from the Americas now account only for a share of 9.23 per cent, it grew by 19.47 per cent at $3,191.60 million, against $2,671.42 million in the corresponding months of 2002. India's import from Africa

(5.19 per cent) rose by 16.01 per cent at $1,796.99 million during the period under review, against $1,549.02 million.