With this the machinery and instruments sector enters the exclusive club of the top five forex earning sectors.

A recent study by the Federation of Indian Export Organisations stated that machinery and instruments sector reported a higher growth in 1996-97 compared to the previous year.

"Exports of from this sector were to the tune of $1,162 million in 1997-98, indicating a growth of 10 per cent over 1996-97. However, in 1996-97 export growth was higher, 25 per cent over 1995-96," the report stated.

The top five importers of Indian machinery and instrument were the United States, Germany, United Arab Emirates, United Kingdom and Malaysia. However, only exports to Germany and Malaysia registeredgrowths of 35 per cent and 31 per cent respectively.

Exports of gems and jewellery grew by 8 per cent in 1997-98 to reach $5,124 million after slump of 10 per cent during 1996-97. The sector has continued with its traditional markets in the United States, Hong Kong, Belgium, Japan and Israel.

Fieo's report states: "Exports to USA in 1997-98 reached $1,921 million, registering a growth of 17 per cent. In 1996-97, there was virtually no growth in exports to USA. Exports to Hong Kong, which were down by 14 per cent in 1996-97, recovered to achieve a growth rate of 9 per cent in 1997-98 with a value of $1,178 million. Similar trend was also experienced in case of exports to Belgium, with an increase of 9 per cent. The heaviest decline was experienced for exports to Japan, where the exports decreased by 30 per cent."

It also mentioned that Israel emerged in the top five with a whopping growth of 59 per cent to reach a value of $198 million, after a decline of 9 per cent in 1996-97.

Cotton yarn, fabrics andmadeups retained its second position with a forex earning of $3259 million. Exports of this sector grew by only 4 per cent in 1997-98 against a remarkable growth of 21 per cent in 1996-97. The top five destinations were the US, Bangladesh, Hong Kong, the United Kingdom and Germany.

Among these countries, exports fell sharply in all, except for Hong Kong and the United Kingdom, which witnessed positive but minor growth.

Readymade cotton garments, despite a negative growth of 5 per cent, followed cotton yarn and fabrics to retain its third position, with exports of $2,810 million.

However, exports of drugs and pharmaceuticals grew by 15 per cent and ended with an annual billing of $1,409 million in 1997-98. The top five importers of Indian drugs are the US, Germany, Russia, Hong Kong and the Netherlands.

The Fieo report states: "Exports of drugs and pharmaceuticals reached a figure of $1,409 million in 1997-98, growing by 15 per cent over the previous year.

However this growth rate was lower than therates achieved in 1995-96 and 1996-97, 27 per cent and 20 per cent respectively...Only exports to the Netherlands did well in 1997-98 and achieved a growth of 33 per cent against a fall of 9 per cent in the previous year."

Growths were also registered in the exports of metal manufactures and manmade yarn, fabrics and madeups.

While metal manufactures grew by 17 per cent to end at $1,074 million, the latter went up by nine per cent and reported earnings of $769 million.However, oil meals and transport equipment suffered heavily. Exports of oil meals was $917 million, a decline of seven per cent. Exports of transport equipment fell by 13 per cent from $970 million in 1996-97 to $840 million in 1997-98.