Exports rise two months in a row, grow 9% in December

Exports rise two months in a row, grow 9% in DecemberExports of the country grew for two months in a row and registered a growth of 9.3 per cent in December. The total export grew 18.2 per cent in November after recording fall in 13 straight months before that.

Exporters appealed to the government to continue with its stimulus package as the revival in economy pushed up demand and raised exports. The higher growth recorded was believed to be mainly because of the lower base effect of December 2008.

Some analysts estimate the exports for the financial year 2009-10 to be lower 5% from the previous year while a 10 per cent growth in 2010-11is expected with the recovery in the global economies.

The exports of the country are expected to touch $165-175 billion in 2009-10, however it is lower than last fiscal's revised export figure of $185 billion.

The President of the industry body, Federation of Indian Export Organisations Mr. A. Sakthivel said, "Stimulus should continue till exports stabilise as there is a question mark over growth in most economies once the huge stimulus poured into the economies are withdrawn."

The commerce ministry has requested that the 2 per cent interest subsidy on rupee export credit offered by the government should be extended till December 2010 mainly to labour intensive sectors and engineering and chemicals.

The imports in the county also rose 27.2 per cent in December after declining for 11 months, as the demand rose in domestic economy.

The export in the month of December stood at $14.6 billion against $13.36 billion a year ago while import for the month stood at $24.75 billion from $19.45 billion in December 2008. The trade gap was $10.14 billion during the month from $6.08 billion a year ago.