New Delhi, Sep 14 (FN Agency) Engineering goods, petroleum products and gems & jewelry continued to drive India’s exports with August outward shipments value rising 45.76 per cent to US$ 33.28 billion as compared to US$ 22.83 Billion in the same month a year ago. Merchandise imports in August stood at US$ 47.09 billion, up 51.72 per cent year-on-year, leading to widening of trade deficit. “The trade balance for August 2021 was estimated at US$ (-)13.81 billion as against US$ (-)8.20 billion in August 2020, which is a decline of (-) 68.30 percent. As compared to August 2019 (US$ (-)13.86 billion), trade balance in August 2021 exhibited a positive growth of 0.37 per cent,” said Ministry of Commerce & Industry in a press release. Exports have been one of the key engines driving the economic growth post pandemic.
Buoyed by the high double-digit growth month after month, the Commerce and Industry Ministry has set a target of US$ 400 billion for merchandise exports in FY22. “The various policy measures taken by the government such as notification of RoDTEP rates and promise to clear all pending dues on account of various export promotion schemes would strengthen the growth further,” said EEPC India Chairman Mahesh Desai. India’s overall exports (merchandise and services combined) in August 2021 are estimated to be US$ 52.20 billion registering a positive growth of 33.99 per cent over the same period last year and a positive growth of 19.89 per cent over August 2019. Overall imports in August 2021 are estimated to be USD 58.57Billion, exhibiting a positive growth of 45.38 per cent over the same period last year and a positive growth of 16 per cent over August 2019. “With gold imports likely to ease in the ongoing month on account of the inauspicious period, the merchandise trade deficit may moderate under US$10 billion in September 2021,” ICRA Chief Economist Aditi Nayar said.
Nayar said that she expects a small current account surplus in Q1 FY2022 to offset a mild deficit in the ongoing quarter, resulting in a largely balanced current account in H1 FY2022. “This will be followed by moderate deficits in the remaining two quarters of this year, aggregating to around US$ 20-25 billion, as domestic demand and mobility recover with widening vaccine coverage,” she noted. Among commodity groups that recorded positive growth in August 2021 were petroleum products (144.6 per cent), gems & jewellery (88.3 per cent), Engineering goods (59.01 per cent), Cotton yarn/fabs./made-ups, handloom products etc. (55.84 per cent) and Man-made yarn/fabs./made-ups etc. (51.71 per cent). Oil imports in August 2021 were US$ 11.65 billion up 80.64 percent year-on-year.