More Than 45 Percent Jump In India’s Exports

More than 45 percent jump in India’s exports, but backward on this front.

The country’s exports grew 45.76 percent to $33.28 billion in August last month. However, the trade deficit widened to a four-month high of $13.81 billion during this period.

This information has been given in the data released on Tuesday by the Ministry of Commerce.

Exports have grown mainly due to better performance of sectors like engineering, petroleum products, gems & jewelery and chemicals. Exports stood at $22.83 billion a year ago in August 2020.

According to the data, in August 2021, imports grew by 51.72 percent to $ 47.09 billion. It was $ 31.03 billion in the same month a year ago.

Thus, the trade deficit widened to $13.81 billion in August 2021 from $8.2 billion in the same month last year. Earlier, in April 2021, the trade deficit was $ 15.1 billion.

In the first five months of the current fiscal, April-August, 2021, total exports grew by 67.33 percent to $164.10 billion, from $98.06 billion in the same period of the previous fiscal.

At the same time, during April-August, 2021, imports reached $ 219.63 billion, which was $ 121.42 billion in the first five months of the previous financial year.

Thus, the trade deficit in the first five months of the financial year stood at $55.54 billion against $23.35 billion in the same period of the previous fiscal.

In August, the country’s crude oil imports rose 80.64 percent to $ 11.65 billion. At the same time, gold imports rose by 82.48 percent to $ 6.75 billion during this period.

More than 45 percent jump in India’s exports: Engineering exports during the month grew by 59 percent to $9.64 billion, respectively.

While exports of petroleum products jumped 144.6 percent to $4.65 billion, while gems and jewelery exports grew by 88.3 percent to $3.43 billion.

During this period, chemical exports grew by 36 percent to $2.23 billion.

SK Saraf, former president of FIEO, a premier organization of exporters, said export growth is strong and India is on course to achieve the export target of $400 billion in the current fiscal.

FIEO President A Sakthivel said that the government should take steps to increase the flow of containers.

Besides, there is an urgent need for the government to intervene in the matter of setting up a regulatory authority on an increase in freight charges and levying various charges by shipping lines.

He urged the government to provide transportation support for exports by March 31. He said the freight rates are currently sky-high.

ICRA Chief Economist Aditi Nair said the trade deficit widened mainly due to imports of gold and crude oil. Nair said gold imports are likely to come down in the coming times.

In such a situation, the trade deficit can come down to 10 billion dollars in September.