June 1 (Bloomberg) -- India’s government will today release the trade data for April amid concerns that the nation’s exports may continue its longest declining streak in a decade.
Exports slumped 33 percent, the most on record, in March as the worst global recession since World War II damped demand for Indian products. The drop is likely to continue until September, Trade Secretary Gopal K. Pillai said April 13.
Falling overseas sales may cost India about 10 million jobs, the Federation of Indian Export Organisations, a lobby group, estimates. Exports, which account for about 15 percent of the Indian economy, grew 3.4 percent to $168.7 billion in the fiscal year ended March 31, missing a $200 billion target set by the government before the collapse of Lehman Brothers Holdings Inc. accelerated the world financial and economic slump.
The government expects exports to total $170 billion in the year that started April 1.
India’s parliament will convene today for the first session since elections in April and May for seven sittings, with the swearing in of newly elected members of the lower house, or Lok Sabha. The speaker of the house is due to be elected on the third day of the session. The Congress party’s Meira Kumar is a front runner for the post, the Hindu reported yesterday.
President Pratibha Patil is due to address a joint session of parliament on June 4, during which she will unveil the plans of the government led by Prime Minister Manmohan Singh.
Rupee, Bonds
India’s rupee completed its best month on record in May after optimism Singh will revive stalled reforms fueled a rally in stocks and attracted funds from overseas. The rupee closed at a five-month high of 47.0875 to a dollar, according to data compiled by Bloomberg. Its 6.4 percent gain last month was the best performance since at least 1973.
Ten-year bonds last week had their biggest weekly decline in two months on concern increasing supply will reduce demand for existing securities. Benchmark yields climbed for a fifth week, the longest stretch since June 2008. The yield on the 6.05 percent note due February 2019 climbed 21 basis points during the week to 6.7 percent. A basis point is 0.01 percentage point.
India’s benchmark stock index rose 5.3 percent last week, extending its winning streak to 12 weeks. The gain helped the Bombay Stock Exchange’s Sensitive Index cap its best month in 17 years. Reports that the government would boost spending to spur growth and better-than-expected expansion of the gross domestic product in the January-March quarter helped the advance.
Ranbaxy Laboratories Ltd., which rose 27 percent, Sterlite Industries (India) Ltd., which advanced 23 percent, and DLF Ltd., higher by 22 percent, were the top performers on the Sensex.
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