India’s 2010/11 exports surge to record growth

(Reuters) - India’s exports surged to record high growth of 37.6 percent in the fiscal year 2010/11, the government said in a statement on Monday, as demand soared for engineering goods, oil products and gems manufactured in Asia’s third-largest economy.

Exports were at $245.9 billion for the year, comfortably higher than the government’s original target of $200 billion, while imports rose 22 percent to $351 billion. The trade deficit was at $104.8 billion, slightly higher than the provisional forecast of $104.4 billion.

The government had released the provisional data for the year in mid-April.

India will target at least 25 percent export growth in this fiscal year but uncertainty over the global economy and a ballooning import bill mean concerns persist over the trade deficit of one of the world’s fastest-growing economies.

India’s monthly exports have notched double-digit growth for much of the past year as demand revived from traditional export destinations -- the United States and Europe, which had fallen sharply after the financial crisis. Indian exporters have also seen high growth in new markets, especially in Latin America.

The trade ministry had raised “serious concern” earlier in the year over the trade deficit, which is set to balloon to $278.5 billion by 2014 on current trends, a 20-fold increase over a decade from the $14.3 billion in 2004.

Oil imports for the fiscal year 2010/11 rose 16.7 percent to $102 billion.

India’s exports in the month of March rose 43.9 percent to $29.1 billion while imports rose 17.3 percent to $34.7 billion. The trade deficit was at $5.6 billion for the month while oil imports rose 8.2 percent to $9.4 billion.

The trade deficit, which widened to a 23-month high in August, later moderated on the back of stronger-than-expected exports. That helped narrow the current account deficit in the quarter through December to under 2.5 percent of gross domestic product (GDP), lower than 4.3 percent in the previous quarter.

Trade Secretary Rahul Khullar in April said the current account deficit for the full fiscal year 2010/11 will be less than 3 percent of India’s GDP. However, he was reluctant to predict the trade deficit and current account deficit for the fiscal year ending March 2012.

India to help Morocco in developing MSME sector

New Delhi (PTI) India has assured African nation Morocco of full cooperation in developing micro, small and medium enterprises sector and setting up institutions for skill development in that country.

Moroccan Minister for Foreign Trade Abdellatif Maazouz called on MSME Minister Virbhadra Singh and sought collaboration with the Indian sector in view of the tremendous work done by the country.

“The Minister (Singh) assured full co-operation for the development of MSME sector,” an official statement said.

Both the nations could ink a pact based on further development, it said.

Indian MSMEs produce products covering both manufacturing and services sectors, including traditional and handicraft items as well as hi-tech products.

“India can help Morocco in setting up tool rooms in their own country as they have done in many other countries,” it said.

India has set up 10 institutions (tool rooms) for upgrading Indian MSME technology by providing right toolings, training manpower and consultancy in the area of tool and die making.

The sector employs about 60 million people and contributes eight per cent in the country’s GDP.