Merchandise exports for April, the first month of the financial year 2011-12, recorded 34.42 per cent growth to $23.85 billion, according to the data released by the Commerce Ministry on Wednesday.
This growth in shipments was almost the same as the robust 37.55 per cent in 2010-11, but lesser than the 44 per cent registered in March.
But the Commerce Secretary, Dr Rahul Khullar, had said recently that the fall in growth was not a matter of concern as March is always a peak month every fiscal.
The Government has set an export target of $500 billion by 2013-14 after shipments had touched a record $246 billion in 2010-11.
GROWTH TO SLOWDOWN
Mr Ramu Deora, President, Federation of Indian Export Organisations (FIEO), said that the export momentum continues as emerging economies are showing overall growth leading to demand of Indian products.
He added that the increase in global metal and commodity prices also played a role in the export growth. Exporters belonging to engineering, gems and jewellery, electronics, chemicals, plastics and petroleum products played a vital role in the export growth, the FIEO President said.
However, he cautioned that the growth may taper down from July onwards due to the uncertainty over the continuation of the Duty Entitlement Passbook (DEPB).
Besides, the cost of export credit has gone up in the last few months consequent to the increase in base rate and withdrawal of the interest subsidy for exports, Mr Deora said.
IMPORTS
Meanwhile, imports in April grew by 14.13 per cent to $32.83 billion. Oil imports during the month were $10.18 billion, which was 7.7 per cent higher than that of the same month last year. Non-oil imports in April were $22.65 billion, registering 17.3 per cent growth.
However, trade deficit in April was at $8.98 billion, which was lower than the deficit of $11.02 billion during April 2010.