Goods exports rise 5.27% in September 2020 after six months of fall

After six months of continuous fall, India’s goods exports have posted a 5.27 per cent growth in September 2020 (year-on-year) to $27.4 billion with some crucial sectors such as readymade garments, engineering goods, petroleum products, pharmaceuticals and carpets on an upswing, according to preliminary data released by the Commerce & Industry Ministry on Friday.

India’s imports in September 2020, on the other hand, declined 19.6 per cent to $30.31 billion, shrinking the trade deficit to $2.91 billion, compared to $11.67 billion in September 2019.

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“Make in India, Make for the World: Indian merchandise exports grow 5.27 per cent in Sep 2020 as compared to last year. Another indicator of the rapid recovery of Indian economy as it surpasses pre-COVID levels across parameters,” Commerce & Industry Minister Piyush Goyal had tweeted late on Thursday, disclosing the export figures.

Other sectors that posted an increase in exports in September 2020 compared to the same month last year are iron ore, rice, other cereals, ceramic products and glassware, oilseeds, meat, dairy & poultry, handloom, tobacco and spices, as per the data.

Labour-intensive sectors hurt

What is of concern, however, is that exports from some major labour-intensive sectors such as gems & jewellery, marine products and leather & leather products continued to decline.

Major commodities that posted a decline in imports in September 2020 over the corresponding month of 2019 are gold, silver, transport equipment, newsprint, leather and leather products and sulphur and unroasted iron parts.

Exports from India have been falling (year-on-year) since March 2020 when the government announced a national lockdown to check the spread of Covid-19, with similar measures being taken by governments across the world. In March 2020, India’s goods exports fell 34.57 per cent compared to the same month last year while in April, the fall was much steeper at 60.28 per cent.

In the subsequent months, the severity of the decline in exports lessened a little as the world tried to get back to work and August 2020 witnessed a lower decline of 12.66 per cent to $ 22.7 billion.

Also read: Engineering goods exporters flag shortage of shipping containers, high freight rates

A ray of hope

The decline in exports has been pronounced in most major sectors such as petroleum, gems and jewellery, engineering goods, ready-made garments and leather, according to official figures for August 2020 released last month. But the growth in exports in September could spell hope for the future.

Exporters body FIEO, while commenting on the August export figures a fortnight ago, had said that exporters had started receiving a lot of enquiries and orders from across the globe, helping many sectors show improved export performance. This is likely to get better and better in the next few months, it added.

“The start of business activities across major economies like the US, the EU, Canada, Japan, South Korea, Australia and New Zealand has also helped in bringing back the tempo to the sector,” a statement by FIEO had said.

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