New Delhi, June 4 (FN Bureau) Driven by petroleum products, gems and jewellery, electronic goods and readymade garments among others, India’s merchandise exports rose 16.87% year-on-year in June 2022 to $37.94 billion as compared to $32.49 billion in the same month last year.According to preliminary trade data released by Commerce and Industry Ministry on Monday, merchandise exports surged 51.02% in June 2022 to $63.58 billion as compared to $42.1 billion in June 2021 leading to widening of the trade deficit.The trade deficit in June 2022 stood at worryingly high level of $25.63 billion as compared to $9.61 billion in June 2021.”Despite an expected fall in the gold imports, the merchandise trade deficit widened further to a worrying $25.6 billion in June 2022, with a sequential dip in exports and a rise in the non gold imports relative to May 2022.
With a steady uptick in the size of the merchandise trade deficit over the course of the quarter, we expect the current account deficit to more than double to $30 billion in Q1 FY2023, from the modest $13 billion in the previous quarter,” said Aditi Nayar, Chief Economist, ICRA.The trade data showed value of non-petroleum exports in June 2022 was $30.12 billion, registering a positive growth of 5.53% over non-petroleum exports of $28.54 billion in June 2021.Value of non-petroleum and non-gems and jewellery exports in June 2022 was $26.75 billion, registering a positive growth of 4% over non-petroleum and non-gems and jewellery exports of $25.72 billion in June 2021.”Petroleum products (98.01%), electronic goods (50.66%) and RMG of all Textiles (44.67%) led the way in high increase in exports during June 2022,” said Commerce Ministry.Engineering goods which account for nearly one-fourth of the total merchandise exports from the country fell 1.57% in June 2022 to $9.14 billion as compared to $9.29 billion in June 2021.Commenting on trade data, EEPC India Chairman Mahesh Desai said that slowdown in the world economy emanating largely from the Russia-Ukraine war is likely to dampen global trade.
He noted that engineering goods export has been affected as a result of negative spillover of the global headwinds.In what reflected high energy prices in the international market, India’s petroleum, crude and products import doubled to $20.73 billion in June 2022 as compared to $10.67 billion in June 2021. Imports of coal, coke and briquettes soared 242% to $6.41 billion as compared to $1.87 billion in June 2021.Gold imports rose 169% to $2.61 billion in June 2022 from $969 million in June 2021.”Crude and coal were responsible for around three-fourth of the YoY rise in merchandise imports in June 2022, driving the widening of the current account deficit,” Aditi Nayar said.