Indian Economy Riding Export Boom

Merchandise exports were a major contributor to the stupendous growth of the Indian economy during 2006 having crossed the magic figure of $100 billion, according to Kamal Nath, India’s Minister for Commerce and Industry.

The Minister spoke at a function organized by the Federation of Indian Export Organizations (FIEO), where the FIEO’s Niryat Shree and Niryat Bandhu awards for the years 2003-04 and 2004-05 were distributed.

This growth in overall exports represented a huge 24 percent increase over the comparative figures for 2005, according to recent figures released by the Government of India. Having achieved similar growth of 24 percent during the Indian fiscal 2004-05 and 27 percent during 2005-06, exports have now grown three times faster than the GDP.

Detailed sector export figures, including those of the gems and jewelry segment, have yet to be published.

With exports in the first 8 months of the current fiscal year having reached $80 billion, Kamal Nath said he is confident that the country will achieve its target of $125 billion of exports in the current fiscal year.

Government agencies reported that India has set itself an export target of $150 billion by 2008-09 and achieving this goal would create 13.6 million new jobs within the country.

The government has also embarked on a massive export promotion drive with the passing of a new set of Special Economic Zone (SEZ) rules for the year. By now, 237 SEZs have been formally approved and 51 SEZs were notified during 2006.   

In terms of the FIEO awards, there are two categories: Niryat Shree for outstanding export performance and Niryat Bandhu for support to exporters provided by export promotion agencies.

The winners in the gems and jewelry category were as follows: