India's exports shoot up by 37.1% in 2010-11

India's exports surged to record high growth in the fiscal year 2010-11, but uncertainty over the global economy and a ballooning import bill mean concerns persist over the trade deficit of one of the world's fastest-growing economies.

India's merchandise exports rose an annual 37.5% to USD 246 billion in the last fiscal year that ended in March, the highest growth on record as demand soared for engineering goods, oil products and textiles, Trade Minister Anand Sharma said.

The government's target was USD 200 billion.

India will aim for at least 25% export growth in the 2011-12 fiscal year, which started in April, Sharma said, as the government hopes to double its merchandise exports within three years.

"We have exceeded the target by 46 billion which is very encouraging," Sharma told reporters on Tuesday. "More so because it has been in the backdrop of many challenges."

Exports in March were at USD 29.1 billion, the highest dollar figure on record.

The surge in exports will go some way to ease concerns over the trade deficit, which has been under pressure from a ballooning import bill for oil and industrial equipment to feed an economy seen growing at about 9% this fiscal year.

Monthly exports have notched double digit growth for much of the past year as demand revived from traditional export destinations -- the United States and Europe, which had fallen sharply after the financial crisis. Indian exporters have also seen high growth in new markets, especially in Latin America.

The provisional trade deficit for the fiscal year 2010-11 stood at USD 104.4 billion, narrower than earlier ministry forecasts of as much as USD 135 billion. However, Trade Secretary Rahul Khullar said the final number would likely be around USD 105 billion-USD 115 billion for the year.