Bucking the trend of over 24 per cent growth in merchandise exports during April-January 2004-05, exports in rupee terms in thrust areas like agriculture and gems and jewellery have increased by a mere four per cent.
An analysis of the data compiled by the Directorate-General of Commercial Intelligence and Statistics till January 2005, indicates that growth in the six thrust areas outlined in the Foreign Trade Policy increased to Rs 75,295 crore (Rs 752.95 billion) during April-January 2004-05, compared with Rs 72,536 crore (725.36 billion) during the same period a year ago.
The government had identified plantations, agriculture and allied products, leather goods, gems and jewellery, textiles and handicrafts as thrust areas in the five-year foreign trade policy announced on July 31, 2004.
The data also indicate that as a percentage of total merchandise exports, the exports from the thrust areas declined to 26.3 per cent during April-January 2004-05 compared with 31.6 per cent in the same period in 2003-04.
Further, if one were to analyse the DGCIS data for the period August-January 2004-05, the period that followed the announcement of the policy, there are indications that exports from the thrust areas have declined by 2.6 per cent to Rs 44,749 crore (Rs 447.49 billion) against Rs 45,960 crore (Rs 459.6 billion) during 2003-04.
Further, the share of thrust area exports as a percentage of total exports is also lower at 25 per cent during August-January 2004-05 compared with 31.3 per cent during August-January 2003-04.
An analysis of the export performance in dollar terms of various sectors vis-a-vis their targets fixed for fiscal 2004-05 shows that for the period April-December 2004-05, sectors like ores and minerals, sports goods, chemicals, engineering and petroleum products have already exceeded the targets.
However, exports of agriculture and allied products have touched $ 2.23 billion during April-December 2004-05 against a target of $ 5.85 billion, achieving just 51 per cent of the target.
Similarly, export of gems and jewellery increased to $ 9.37 billion during the period April-December 2004-05 against a target of $ 13.30 billion.
This accounted for about 94 per cent of the target.