ASEAN, Africa major exports market for India

New Delhi, Sept 2: India's exports realisation soured by 132 per cent, with the ASEAN region taking a lead recording a growth of 257 per cent between the fiscal 2000-01 and 2006-07, an industry body Assocham said.

According to an analysis on regionwise exports by Assocham, Africa's share also rose by 198 per cent, while that of WANA (West Asia and North Africa) and Latin America increased by 197 per cent and 193 per cent respectively.

Exports grew by 183 per cent and 158 per cent respectively in South and North Asia region, while a 117 per cent hike was seen in exports in the European Union along with a 84 per cent increase in North America.

''An early signing of the Free Trade Agreement (FTA) with ASEAN could accelerate the export growth by nearly 500 per cent, while the African share could go over 350 per cent by 2010 with a little more focus,'' Assocham President Venugopal N Dhoot said.

The top five products that recorded a whooping exports growth for the ASEAN region include precious and semi-precious stones, mineral fuels, mineral oils and waxes besides residues and waste from the food industries, nuclear reactors, boilers, machinery and mechanical appliances and electrical machineries.

The analysis says that highest exports to ASEAN were because semi and precious stones exports alone rose by 400 per cent from 2000-01 to 2006-07, along with a similar rise in organic chemicals.

Exports of mineral fuels and mineral waxes and mineral oils also rose significantly 2,462.94 million dollars from 4.43 million dollars.

The rise of African region's share to India's focussed export programme. ''If the programme is further accelerated, this region can yield export realisations to the tune of 350 per cent from about 198 per cent in 2006,'' said Mr Dhoot.

The top five products exported to Africa include pharmaceuticals, cotton, nuclear reactors, boilers, mechanical appliances, vehicles and railway wagons along with rolling stock.

''India's exports to WANA and Latin America rose due to the large demand for Indian organic chemicals, pharmaceutical products, apparel and clothing, vehicles, rolling stocks and cotton,'' said Mr Dhoot.

Indian products were found to be much more competitive in these two regions without an intensive focus for export acceleration.

''In Latin America, particularly, the growth for pharmaceutical products exports rose to 220.94 million dollars in 2006 from 17.38 million dollars in 2000, while vehicles and rolling stocks registered a growth of 291.3 million dollars from 83.24 million dollars.

South and North Asian share grew by 183 per cent and 158 per cent, which is significant because China is very close to this region and its export monopoly continues.

''Despite that, India has made a significant dent in these two regions, where the top five products include exported comprised fish and other aquatics, ores and slags, organic chemicals, cotton and stones and semi-precious stones,'' said Mr Dhoot.

The analysis said that India will continue to give a tough competition to China and other countries in the region for increased exports in South and North Asia.

India's export growth in the European Union was to the extent of 157 per cent only with the major exported products including apparel and clothing, leather, leather products, handbags, electrical machinery, equipment and knitted products.

''India did not do too well for still higher export realisation in the EU is because of the SPS measures, which in case of all European countries are very stringent and proved to be biased against Indian products for export purposes,'' said Mr Dhoot.

The exports to North America rose by a meagre 84 per cent, as it has proved to be a traditional export market for Indian exports and their growth will remain gradually in it for many years, says the analysis.

UNI