Post Date : August 3, 2021
India’s goods exports in July 2021 registered a 47.91 per cent increase (year-on-year) to $ 35.17 billion — the highest exports recorded in at least nine years — driven by strong performance of petroleum products, gems and jewellery and engineering goods.
The country exported a record $35.2 billion worth of goods in July, a sign of a rapid economic recovery in key Western markets which has led to a rise in demand for Indian products.
Preliminary data released by the commerce ministry reveals that merchandise imports also shot up to $46.4 billion, the second-highest in history, leading to a widening of trade deficit to $11.2 billion.
The highest growth in exports by value were to the United States, United Arab Emirates and Belgium, while exports to Malaysia, Iran and Tanzania declined the most.
Likewise, the largest increase in imports was from UAE, Iraq and Switzerland while imports from France, Germany and Kazakhstan declined the most.
During July, top export items were petroleum products, engineering goods, and gems and jewellery, while top import items included crude oil, gold and precious stones, and vegetable oil.
“Make in India, Make for the world: India’s merchandise exports in July 2021 was $35.17 bn, an increase of 34% over July 2019. PM Narendra Modi ji’s vision for Aatmanirbhar Bharat has given a boost to exports,” Trade minister Piyush Goyal tweeted.
The government has set a merchandise exports target of $500 billion for FY23 and $1 trillion in the next five years. Commerce secretary B.V.R. Subramanian said last month that in the next six years, services exports will be $500 billion, and merchandise exports will be $1 trillion. “With annual $1.5 trillion total exports, India will have a significant share in world trade,” he said.
With respect to the growth forecast, the International Monetary Fund (IMF) kept its global growth forecast unchanged at 6% for 2021. However, for emerging market and developing economies lagging in vaccination, such as India and Indonesia, it predicted that they would suffer the most among G20 economies.
For India, IMF slashed economic growth projection for FY22 to 9.5% from 12.5% estimated in April, citing a slow recovery in consumer confidence due to the second wave of the ] pandemic as well as a slowly emerging vaccination programme.