Imports increase 51.47 percent to USD 47 billion; annual export target of USD 400 billion within reach, says Indian Commerce Secretary.

India’s exports continued to rise in August posting a 45.17 percent growth year-on-year (Y-o-Y) at USD 33.14 billion with impressive performance across sectors such as engineering goods, petroleum products, gems & jewellery, chemicals, pharmaceuticals and textiles, according to the Commerce & Industry Ministry’s provisional data.

 

Exports in April-August 2021 rose 66.92 percent to USD 163.67 billion compared to exports in the comparable period last year, as per the numbers released on Thursday. However, exports in August 2021 were about 5.77 percent lower than the exports in July 2021, valued at USD 35.17 billion.

 

“We are confident that we can reach the export target of USD 400 billion set for this fiscal,” Commerce Secretary BVR Subrahmanyam said at a press briefing. This will be a significant improvement over not only last year’s export performance of USD 292 billion but also the all time high exports of 2018-19 valued at USD 330 billion.

 

Imports surge

 

Imports in August 2021 increased 51.47 percent to USD 47.01 billion. In the April-August 202l period, imports rose 81.75 percent to USD 219.54 billion. Trade deficit in August 2021 was at USD 13.87 billion, compared to USD 8.2 billion in the same period last year.

 

Imports of petroleum, gold, vegetable oil, pearls, precious and semiprecious stones, machinery, iron and steel and coke posted sharp increases in August 2021 compared to August 2020.

 

“Imports clocking USD 47.01 billion with a growth of 51 percent during the month should be analysed,” said Federation of Indian Export Organisations President, A Sakthivel.

 

The Commerce Ministry of India has already put in place an import monitoring system to track the items where imports are surging so that it could jointly discuss ways to curb such surges with line Ministries and Departments.

 

It was encouraging that export growth had taken place across sectors that were labour-intensive such as garments, engineering goods, handloom products and gems and jewellery as it would further help in job creation in the country, Sakthivel said.

 

Value of non-petroleum exports in August 2021 stood at USD 28.58 billion, registering a growth of 36.57 percent over August 2020. Non-petroleum imports were valued at USD 35.37 billion in August 2021 with a growth of 43.88 percent over non-petroleum imports in August 2020.

 

Source: thehindubusinessline.com