New Delhi, NFAPost: India exported goods worth $35.43 billion in July, the highest first time ever in a month, due to recovery in key global markets and robust demand, according to the data released by the commerce and industry ministry on Friday.
According to the statistics released by the Ministry of Commerce and Industry, outbound shipments grew by nearly 50% over July 2020, which can be partly attributed to a favourable base.
Prime Minister Modi has set merchandise export target Of $400 Billion for this financial year. In first 4 months of the 2021-22 Financial Year, India has already achieved 33% of that. Order books look good. $400 Billion is achievable and if achieves the target it will be the first time.
As compared to pre-Covid level, the growth was 35% from July 2019. Merchandise exports and imports had plummeted in the first few months of 2020-21, with the imposition of lockdown measures to curb the spread of Covid-19.
On a sequential basis, outbound shipments grew at their fastest this fiscal year, witnessing an 9% jump. The growth was led by higher demand for engineering goods, gems and jewelry, textiles and apparels, chemicals and electronic goods.
But at the same time overall imports in July 2021 are estimated to be $57.29Billion, exhibiting a positive growth of 50.15% over the same period last year and a positive growth of 10.60% over July 2019
“The higher value of petroleum products accounted for more than one-third of the YoY rise in merchandise exports in July 2021. The merchandise trade deficit in July 2021 was almost entirely contributed by petroleum products and precious metals and stones, with the net deficit of the balance items limited to a muted $0.6 billion, shrinking from an average of $2.2 billion in the previous quarter,” Aditi Nayar, Chief Economist at Icra said.
The commodities/commodity groups which have recorded positive growth during July 2021 vis-à-vis July 2020 arePetroleum products (230.98%), Gems &jewellery (130.5%), Other Cereals(108.86%), Man-made yarn/fabs./made-ups etc. (58.93%), Cotton yarn/fabs./made-ups, Handloom products etc. (48.35%), Marine products (47.68%), Electronic goods (47.58%), Engineering goods (42.59%), Handicrafts excl. hand made Carpet (32.61%), RMGof all textiles (30.59%), Organic &inorganic chemicals (28.47%), Carpet (25.72%), Plastic & Linoleum (24.14%), Jute mfg. including floor covering (22.08%), Mica, Coal &other ores, minerals including processed minerals (18.17%), Cereal preparations &miscellaneous processed items (17.2%), Leather &Leather products (16.46%), Ceramic products &glassware (7.19%), Drugs &pharmaceuticals (4.11%) and Fruits & Vegetables (0.82%).
The commodities/commodity groups which have recorded negative growth during July 2021 vis-à-vis July 2020 are Oil seeds (-38.59%), Oil meals (-33.85%), Meat, dairy & poultry products (-31.96%), Tobacco (-10.31%), Tea (-8.96%), Spices (-8.34%), Rice (-7.25%), Cashew (-3.6%), Iron ore (-3.39%) and Coffee (-1.89%).
“An interesting trend witnessed is the growth in export of non-petroleum and non-gems and jewellery items in the month of July 2021. The exports of non-petroleum and non-gems and jewellery items have grown at 32.3% over the pre-covid level (July 2019), much greater than the growth of 28.2% over the July 2020 level,” Prahalathan Iyer, Chief General Manager, Research & Analysis, India Exim Bank said.
India culmulatively exported goods worth $130.82 billion this year, up 74% year-on-year. This accounts for close to a third of its annual export target of $400 billion. Goods worth $172.55 were imported, up 94% year-on-year.