Recording growth for the seventh month in a row, India’s exports rose by 48.34 per cent to $32.5 billion in June on account of healthy growth in shipments of petroleum products, gems and jewellery, and chemicals, even as trade deficit stood at $9.37 billion, according to the official data.
Exports in June last year stood at $22 billion and $25 billion in June 2019. In May 2021, outward shipments were worth $32.27 billion and $31 billion in April this year, the data released by the Commerce Ministry on Thursday showed.
Imports in June too rose by 98.31 per cent to $41.87 billion, leaving a trade deficit of $9.37 billion as against a trade surplus of $0.79 billion in the same month last year.
During April-June 2021, the exports increased by 85.88 per cent to $95.39 billion. Imports expanded to $126.15 billion during the first three months of the fiscal as against $60.44 billion in the same period last year, the data showed.
Trade deficit during the quarter was aggregated at $30.75 billion as against $9.12 billion during April-June 2020. The deficit during June has increased as compared to May when it was $6.28 billion.
Oil imports in June were $10.68 billion, which were 116.51 per cent higher compared to $4.93 billion in June 2020. During April-June 2021, the imports stood at $31 billion as against $13.08 billion during the same quarter previous fiscal.
India’s overall exports (goods and services combined) in April-June 2021, according to the data, are estimated to be $147.64 billion, exhibiting a positive growth of 50.24 per cent over the same period last year.
Gold imports in June grew by about 60 per cent to about $970 million.
Commenting on the data, Federation of Indian Export Organisations (FIEO) President A Sakthivel said that the need of the hour is to soon notify the RoDTEP rates to remove uncertainty from the minds of the trade and industry. ICRA Chief Economist Aditi Nayar said that with surging exports and relatively subdued gold imports in May-June 2021 dampening the aggregate trade deficit to a three-quarter low $31 billion in Q1 FY’2022, “we expect the current account to revert to a small surplus in that quarter”.
“In line with the sequential recovery displayed by most high frequency indicators, non oil non gold imports rose in June 2021, reflecting a pickup in demand with the gradual unlocking as well as the high commodity prices,” she said.
“As overall global demand remained buoyant, the partial lockdowns in different parts of the country had kept factories running at half strength. However, with decline in daily cases of infection and resumption of economic activity, India is now set to achieve an all-time high export figure for the financial year,” said A Sakthivel, president, Federation of Indian Export Organisations.
“With such a growth pattern showcased by the export sector, the country’s economic recovery will likely be led by exports, especially from micro, small and medium enterprises,” he added.