New Delhi: India’s exports may not sustain their high growth rate in the coming months due to uncertain economic conditions in Europe and other Western markets, a finance ministry note said.
The average export growth in the last five months has been over 40% and even touched 57% in May.
“On the external sector front, there has been a surge in demand for exports from emerging markets and developed countries of late; this may not be sustained on account of the Euro area and slowdown in global trade volumes and effects of commodity prices,” the note said.
Commerce secretary Rahul Khullar, too, had recently sounded a note of caution on the surge in exports, stating that the 40-45% growth rate may not continue after a few months.
“Things are not well with the global economy right now. These heady growth rates of 40-45% may not continue... The 40% growth rate is a pipe dream that will not continue for the rest of the year,” he had said.
India’s exports grew by 45.7% during April-June, 2011-12, to $79 billion.
The note further said that on the demand side, private consumption and exports were strong, but corporate investment was moderating.