India’s Exports Clock $7.4 Billion in August First Week

After hitting a record $35.2 billion (about ₹2.6 trillion) exports in July, Indian shipments in August started off well garnering $7.4 billion in the first week of the month.

Tentative data released by the commerce ministry showed while exports grew 50.5% in the first week of August, imports shot up 70% to $10.5 billion leading to a trade deficit of $3.1 billion during the seven days period.

While non-petroleum, non-gems and jewellery imports grew 53.3% signalling significant pick-up in domestic economic activities, non-petroleum, non-gems and jewellery exports rose 36.6% during the first week of August.

Sectors that saw highest exports growth include engineering goods (63.2%), petroleum products (145.3%), and gems and jewellery (121%), while iron ore, oil meals, oil seeds saw the highest decline in exports during the first week of August.

Among import items, crude oil (141.8%), precious stones (245.5%), and electronic goods (30.7%) saw the highest increase, while fertilizers, gold, project goods saw the highest decline in imports.

The US ($462.7 million) contributed the most to the increase in Indian exports during the first week of August, followed by UAE ($209.7 mn), and Saudi Arabia ($163.8 million). United Arab Emirates ($595 million) led the increase in Indian imports, followed by China ($485.7 million) and Nigeria ($408.2 million) during the same period.

The government has set a merchandise exports target of $400 billion for FY22 and $1 trillion in the next five years. With services exports target at $500 billion, India hopes to be a significant player in world trade in the next five years, with $1.5 trillion combined exports.

The International Monetary Fund (IMF) last month projected world trade to grow at 9.7% in 2021 after a contraction of 8.3% in 2020. “The merchandise trade recovery is set to broaden after being initially concentrated in pandemic-related purchases, consumer durables, and medical equipment. Services trade is expected to recover more slowly, consistent with subdued cross-border travel until the virus transmission declines to low levels,” it said.

Source: The Mint