However, during April-January FY'10, exports declined to $26.12 billion from $34.19 billion in the same period previous fiscal.
Barring rice, spices, iron ore and pharmaceuticals, all the remaining 26 key sectors registered negative growth in May. Imports too plunged 51 per cent to $22.2 billion in May.
The growth came at a time when exporters had been complaining about reduced margins and weak export performance due to the strengthening rupee.
In an effort to boost India's exports to Singapore, the Exports Inspection Council of India is in talks with the Singaporean government for recognition of its conformity assessment in food, electronics and telecom equipment.
Export of Indian gems and jewellery is unlikely to surpass previous records, given the volatile price of gold and the consumers' increased inclination toward luxury items like perfumes and watches.
The Engineering and Export Promotion Council will send a 15-member delegation to China in February-March, 2005, to explore export potential, its chairman Rakesh Shah said.
Imports too tumbled by 58.65 per cent to $17.12 billion in April from $41.4 billion in the same month last year, according to the data by the commerce and industry ministry.
Experts call for consistency in government policies to enable Indian exporters to frame a long-term strategy.
Of the total $32.5 billion engineering exports in 2009-10, EU accounted for about 30 per cent.
While the formulation is being worked out by the commerce ministry, the industry and export community is also in touch with senior functionaries in the finance ministry.
Demand will boom in the US and China, but exporters say it will be difficult for India to tap these markets.
During April-September 2010-11, exports from the tax free enclaves had clocked Rs 1.39 lakh crore (Rs 1.39 trillion).
Export sectors that showed positive growth last month included chemical, iron ore, electronics, marine products and pharmaceuticals. Decline in overall imports, including oil and gold, led to narrowing of trade deficit.
The stock of the country's largest passenger vehicle maker, Maruti Suzuki India (MSIL), has been hitting successive all-time highs over the past three trading sessions. The rally in the scrip has helped it notch over a 21 per cent gain since the start of February, outperforming the National Stock Exchange Nifty Auto Index. The gains for the leader of small passenger cars have been more recent, as the company still trails the Nifty Auto over one- and two-year periods.
Many economists say only a substantial rise from October would point to a real recovery.
Engineering Export Promotion Council has warned the government that growth in engineering exports will turn negative if the average rupee rate to a dollar falls below 40 during the year.
The sector employs around 1 million skilled and unskilled workers directly and indirectly and decline in exports is a major worry for participants in the value chain.
Despite a stagnant global trend, India's share in global service exports is set to more than double from 2.7 to 6 per cent by 2012, an economic think-tank has said.
Government on Tuesday said it was optimistic of sustaining a high double digit export growth in the current year following assurance by exporters that they would be able to sustain the last fiscal's export performance.
Export growth picked up mainly owing to rising global crude prices, which pushed up processed petroleum exports by nearly 40 per cent, apart from a broad-based improvement in exports of major foreign exchange earners such as engineering goods and gems and jewellery.
Exporters believe the situation will also have a grave outcome for employment, with large numbers of casual laborers looking at no work, as well as downstream units facing a loss of work, reports Subhayan Chakraborty.
Interestingly, none of the top large apparel exporting countries, including the US, saw any significant jump in shipment to the UAE
The exports stood at $4.21 billion in June in 2008. Engineering exporters are not hopeful of recovery in demand in the international market in the coming months.
The Shanghai Stock Exchange has registered maximum fall (56 per cent) from its peak, while the benchmark index of the Bombay Stock Exchange dipped by as much as 40 per cent and the Manila Stock Exchange dropped by 39 per cent, registering the third largest fall. The report added that 'having lost one fifth to one third of their value, equity assets would appear to have greater upside rather than down side prospects.
Silk exporters are already hit by rupee appreciation and competition from Chinese firms, Mittal said, adding that of the total 50 lakh workers in the sector, over 100,000 have lost jobs. The industry is apprehensive that the situation could worsen this year due to deepening of the US economic slowdown, which is spreading to other economies as well.
Having shown some initial signs of recovery in November, India's apparel exports declined by over 11 per cent to $862 million in December 2009 on account of poor demand from the United States and the Euro zone.
Exports stood at $5.27 million (around Rs 24 crore) in October last fiscal.
Buyers from 19 countries participated and showed interest in sourcing from India.
Imports of rough diamonds at $7,249.39 (Rs 32,839.73 crore) million in April 08 - February 09 have shown a decline of dollar term 20.12 per cent (11.31 per cent in rupee term) compared with $9,075.36 million (Rs 37,027.47 crore) in the same period last year. The marginal growth in exports of cut and polished diamonds in the year 2008-09 from the corresponding period of last year is due to increase in the trading activities of cut and polished diamonds.
Exports from the world's largest supplier of gems and jewellery were valued at $1.87 billion in May 2009.
Exporters are now looking at new markets.
Prime Minister Narendra Modi had asked exporters to prepare a strategy for the next five years and start working in that direction.
