Economy

Exports in December grow 38.91 per cent to reach highest monthly value of $37.81 b

Our Bureau | | Updated on: Jan 14, 2022
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Imports increase 38.55 per cent to $59.48 billion; trade deficit widens

Strong growth in sectors such as petroleum products, gems & jewellery, engineering goods, readymade garments and chemicals increased goods exports in December 2021 by 38.91 per cent (year-on-year) to $37.81 billion, the highest monthly performance ever, as per quick estimates released by the Commerce & Industry Ministry on Friday.

Imports, too, posted an increase of 38.55 per cent to $59.48 billion in December 2021, compared to the same month last year, which widened the trade deficit by 37.92 per cent to $21.68 billion. The items driving the high growth in imports included petroleum, chemicals, fertilisers, coal, vegetable oil and electronic goods.

The figures released by the government on Friday are in line with the early estimates shared in the beginning of this month.

Goods exports

Goods exports in April-December 2021 were at $301.38 billion, registering a 49.66 per cent increased over $ 201.38 billion during the period April-December 2020. The figures in the first nine months of the fiscal are higher than goods exports for the entire 2020-21 fiscal valued at $292 billion.

Commerce & Industry Minister Piyush Goyal, in a briefing earlier this month, had expressed hopes of meeting the export target of $400 billion fixed for 2021-22, which would be the highest annual exports from the country. Goods imports for the period April-December 2021 was valued at $443.82 billion, which was 68.91 per cent higher than imports in the same period last year. Trade deficit in the period at $142.44 billion was more than double the trade deficit of $61.38 billion in the first nine months of the previous fiscal.

“Though the trade deficit is growing exponentially, it’s primarily due to petroleum and gems and jewellery imports. India has headroom to accommodate further import growth that goes into manufacturing and export of value-added products. It may be noted that the trade deficit under non-petroleum and non-jewellery segment amounted to just $35 billion during April-December 2021,” pointed out Prahalathan Iyer, Chief General Manager, Research & Analysis, India Exim Bank. Non-petroleum and non-gems & jewellery exports in December 2021 increased 29.67 per cent to $28.92 billion compared to the same month last year. Non-petroleum, non-gems and jewellery (gold, silver & precious metals) imports were $35.47 billion in December 2021 posting an increase of 34.28 per cent over December 2020.

Published on January 14, 2022

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