Press Information Bureau

Government of India

Ministry of Commerce & Industry

08-August-2012 16:47 IST

Review of Export Performance

Export performance is monitored continuously. India’s export is increased by 40.5 % and 21.3 % (provisional) in US $ terms during 2010-11 and 2011-12 respectively.

The low growth is attributable to both global and domestic factors. The global factors include the crisis in the euro-zone and the near-recessionary conditions prevailing in Europe; sluggish growth in several industrialized economies including the USA; hardening international prices of crude oil. Among domestic factors, the tightening of monetary policy in order to control inflation resulted in the slowing down of investment and growth, particularly in the industrial sector.

Measures taken by the government include enhancing the level of investment for agriculture sector including irrigation projects, promoting Micro Small & Medium Enterprise sector by way of higher allocation of funds, enhancing investment in the infrastructure sector focusing on Public Private Partnership and number of legislative measures to develop the financial sector.

This information was given by the Minister of State of Commerce and Industry, Shri Jyotiraditya M. Scindia in a written reply in the Rajya Sabha today.

DS/GK

Export performance monitoring identifies demand and monetary constraints; government advances investment and sectoral measures to boost competitiveness. Continuous monitoring shows export growth slowed due to global demand weakness and domestic monetary tightening that curtailed investment and industrial activity. The government responded with targeted supply side and investment measures: increased public investment in agriculture and irrigation, enhanced support and funding for Micro, Small & Medium Enterprises, prioritized infrastructure investment via Public Private Partnerships, and legislative steps to develop the financial sector to restore capacity and competitiveness.