Indian exports soar, cross annual target

Indian exports shrugged off the impact of a rising rupee and crossed the 12 percent annual growth target to rise to $61.84 billion in the fiscal year ended March.
Government data released on Saturday showed exports in 2003/2004 were 17.26 percent higher at $61.84 billion from $52.74 billion logged in the previous year, thanks to a global economic recovery and large orders from its key market, the United States.
The trade data comes as good news for the Hindu-nationalist Bharatiya Janata Party which is seeking re-election in the election which starts April 20 on the back of a booming economy and peace with neighbour Pakistan.
Nearly 670 million Indian will elect a new government in the polls, which are being fought mainly on economic issues.
"Export growth has been very strong. Despite complaints from exporters about a rising rupee they have grown at a robust pace," said Sanjeet Singh, economist at Bombay-based ICICI Securities.
The government had set a modest 12 percent growth target for 2003/2004 keeping in view a sluggish global economy and the rising rupee against the US dollar.
The rupee has gained about four percent against the dollar since January on robust foreign investments in one of the world's fastest growing economies. Analysts say it is overvalued by nearly four percent on a real effective exchange rate.
The rupee ended Friday at 43.8850/8950 a dollar, bouncing up from a session low of 43.9950 and Thursday's close of 43.9800/9900.
Reflecting strong economic growth, the trade deficit in 2003/2004 nearly doubled to $13.37 billion from $7.45 billion in the year-ago period.
The Indian economy, Asia's third-largest, is expected to grow more than eight percent in the year to March 2004 on the back of the best monsoon rains in a decade, placing it in the ranks of the world's fastest growing economies.
India has a meagre 0.67 percent share of world trade and aims to capture a one percent share by 2007 in an effort to catch up with its Asian rival China.
Earlier this year the government had announced a string of measures to boost exports which account for nearly 10 percent of India's gross domestic product.
Mirroring strong domestic demand, non-oil imports in 2003/2004 rose 29.38 percent to $55.04 billion from $42.54 billion in the previous year.
Oil imports rose 14.29 percent to $20.17 billion in 2003/2004 from $17.65 billion in the previous year.