New Delhi, March 2 (Bureau) Driven by sectors like engineering goods, petroleum, gems & jewellery, electronic goods and chemicals, India’s merchandise exports surged 22.36 per cent year-on-year in February to $ 33.81 billion as compared to $ 27.63 billion in the corresponding period last year. India’s merchandise import in February 2022 was $ 55.01 billion, an increase of 34.99 per cent year-on-year. As per the preliminary data released on Wednesday by Commerce Ministry, trade deficit in February stood at $ 21.19 billion. Value of non-petroleum exports in February 2022 was $ 29.70 billion, registering a positive growth of 18.04 per cent year-on-year over non-petroleum exports of $ 25.16 billion in February 2021.
“A rebound in oil and gold demand amid the waning of the third wave, along with rising global commodity prices fanned by escalating geo-political tensions, boosted imports and bloated the merchandise trade deficit above $ 21 billion in February 2022. Interestingly, non-oil non-gold imports moderated on a sequential basis in the shorter month, even as the pace of YoY growth rose in February 2022 relative to January 2022,” said Aditi Nayar, Chief Economist, ICRA. While gold imports remained lower than February 2021, they nearly doubled sequentially in February 2022, as restrictions eased in parts of the country. We project gold imports at $ 48-50 billion in FY2022, followed by a moderation in FY2023 as the pent-up demand pales, she said.
India’s merchandise export in April 2021-February 2022 was $ 374.05 billion, an increase of 45.80 per cent over $ 256.55 billion in April 2020-February 2021. The cumulative value of outward shipments suggests that India is well on track to achieve $ 400 billion export target for the current financial year 2021-22. Among top export items in February, engineering goods export rose 31 per cent year-on-year to $ 9.2 billion. Petroleum products exports jumped 66.29 per cent in February to $ 4.10 billion from $ 2.41 billion in the same month last year. Exports of gems and jewellery grew 16 per cent year-on-year in February to $ 3.10 billion. Export of the top-10 major commodity groups was $ 26.88 billion in February registering 27 per cent growth year-on-year. They together had nearly 80 per cent share in total exports during February. While exports have been the key growth driver of the economy, the ongoing Russia-Ukraine crisis is feared to have its impact on trade. As the crisis triggered surge in prices of crude oil and other commodities, India’s trade deficit could increase. “The duration of the Russia-Ukraine conflict, and its impact on commodity prices, especially crude oil, will determine the magnitude of the merchandise trade deficit in March 2022, even as year-end fulfilment of export orders may provide a buffer,” ICRA’s Aditi Nayar said.