If there is one silver lining in the dark clouds of high inflation and slow industrial output hovering around the India economy, it’s exports. According to provisional figures available with the commerce department, exports in April, the first month of the current fiscal, have jumped a dramatic 30 per cent in rupee terms, to about Rs 60,000 crore. Exports in April 2007 stood at Rs 46,163.91 crore, and had grown 19.56 per cent compared with the corresponding period previous fiscal. The department will officially release the provisional figures by the end of this month.Officials in the commerce department said the robust 30 per cent growth in April exports was largely because of a strong performance by the engineering goods sector. Engineering goods, that accounts for about one-fifth of India’s total exports, grew a whopping 60 per cent to Rs 15,150 crore in April this year. In April 2007, the category had grown just 20 per cent to Rs 9,492.41 crore.The officials said the growth in engineering goods was surprising given the weak growth of 3 per cent in industrial output in March 2007. Except gems and jewellery and handicraft, which have posted lower export growth rates, most sectors have done well, they said.They, however, did admit that a falling rupee had come to the aid of exporters. The Indian rupee has dropped more than 7 per cent since its closing high of 39.4 against the dollar in early February this year. A depreciating currency helps exporters making their products more price competitive in the global marketplace.Economists argue that exports can be a cushion against an economic slowdown. Exports account for almost 14 per cent of India’s GDP. If the exchange rate moves in the direction of the past 2-3 months, the export target for the current fiscal, will be more than met, say the department of commerce officials.For the full year, commerce and industry minister Kamal Nath has set a $200-billion target, almost 30 per cent higher than the $155 billion exports achieved in 2007-08.
