International Trade Export Import Procedures
With the recovery in the economy in December India’s exports increased to 15-month high because global economy boosted demand for the nation’s products.
On Monday, commerce minister Anand Sharma told “Overseas shipments surged to $14.6 billion (Rs66, 284 crore today) after rising 18.2% from a year earlier in the previous month, the first increase in 14 months.”
Exports are recovering after an average 17.4% decline in the past year.
On Sunday a separate report showed China’s exports climbed 17.7% in December, the first gain in 14 months, as Asian economies recover from the worst worldwide recession since the 1930s.
“We shall sustain this positive trend in the current quarter,” Sharma said.
“The government will announce more stimulus measures for some sectors on Tuesday”, he said.
Overseas sales of cars made by Maruti Suzuki, Hyundai Motor India Ltd and others rose 39.3% in December from a year earlier.
“Total passenger vehicle exports jumped 40.4%, compared with a 15.6% gain in the previous month,” according to the Society of Indian Automobile Manufacturers.
“Various stimulus measures announced by the government have helped exporters bear the impact of the global demand slump,” Sharma said.
The government injected fiscal and monetary stimulus worth over 12% of the gross domestic product between September 2008 and April last year.
US returned to growth in the third quarter after a year-long contraction, and France, Germany and Japan have exited recession.
The American economy, India’s second biggest export market, expanded 2.2% in the July-September quarter.
India is boosting its efforts to increase overseas sales by developing trade agreements with other countries.
In August, India signed a free-trade accord with South Korea and the 10-member Association of Southeast Asian Nations as it attempts to reduce its dependence on the US and Europe, which account for around 40% of the country’s exports.
India in August has also announced tax refunds for exporters to explore new markets in Africa and Latin America.