India’s Merchandise Exports rise 48% in July

New Delhi, Aug 2 (UNI) Helped by sharp rise in outward shipments of petroleum products, engineering goods and gems & jewelry, India’s total merchandise exports in July, 2021 jumped 47.91% to US$ 35.17 billion compared to US$ 23.78 billion in the same period last year.
As per preliminary data released by the government, India’s merchandise imports in July 2021 were US$ 46.4 billion, an increase of 59.38% over US$ 29.11 billion in July 2020 and

 an increase of 14.75% over US$ 40.43 billion in July 2019.
“India is thus a net importer in July 2021 with a trade deficit of US$ 11.23 billion, widened by 110.56% over trade deficit of US$ 5.33 billion in July 2020 but narrowed down by 20.92% over trade deficit of US$ 14.2 billion in July 2019,” said an official statement.
On a cumulative basis, exports during April-July 2021 were US$ 130.56 billion, up by 73.86% over the same period of 2020 (USD 75.10 billion) and up by 21.85% over the same period of 2019 (USD 107.15 billion).
“PM Narendra Modi Ji’s vision for Aatmanirbhar Bharat has given a boost to exports,” Union Industry and Commerce Minister Piyush Goyal said in a Twitter post.
Till July 2021, India’s exports have covered 32.64% of its target exports of US$ 400 billion for the full financial year.
The average monthly achievement during April, May, June and July is US$ 32.64 billion as against the requirement of US$ 33.33 billion monthly average to achieve merchandise exports target for the year.
Accordingly, the target for the remaining 8 months is US$ 269.44 billion or US$ 33.68 billion per month.
Top five commodity groups of export which have recorded positive growth during July 2021 vis-à-vis July 2020 are petroleum products (215.68%), gems and jewellery (130.44%), other cereals (70.25%), man-made yarn/fabrics/made-ups etc.(58.67%) and cotton yarn/fabrics/made-ups, handloom products etc. (48.02%).
In July 2021, the value of non-petroleum exports was US$ 29.57 billion, registering a positive growth of 34.39% over US$ 22.0 billion in July 2020 and a positive growth of 30.01% over US$D 22.75 billion in July 2019.
The value of non-petroleum and non-gems and jewellery exports in July 2021 was US$ 26.11 billion, registering a positive growth of 27.36% over non-petroleum and non-gems and jewellery exports of US$ 20.5 billion in July 2020 and a positive growth of 32.25% over non-petroleum and non-gems and jewellery exports of US$ 19.75 billion in July 2019.
“With the continued unlocking of the economy and a surge in gold imports, the trade deficit widened to a three-month high in July 2021, in spite of merchandise exports clocking an enthusing record-high performance,” said Aditi Nayar, Chief Economist at research and rating firm ICRA.
“While the non-oil exports were robust in July 2021, they remained below the March 2021 level. A spike in oil exports boosted the overall merchandise exports to a record-high level in July 2021,” she added.
Commenting on trade data, especially engineering goods, EEPC India Chairman Mahesh Desai said that the high growth points to pent-up demand, fast recovery in US and European markets, and a robust order pipeline.
“Softening of raw inputs such as primary steel would make engineering goods more competitive internationally and generate additional orders. This will result in capacity expansion by manufacturers and hence more jobs,” said Desai.
Exports have made stellar performance over the last few months and are being seen as a key growth driver of the economy.