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The new year started on a positive note for exporters with goods exports in January rising 5.37 per cent to $27.24 billion (year-on-year), primarily led by a spurt in engineering goods, pharmaceuticals and iron ore, according to the early trends for the month released by the Commerce and Industry Ministry on Tuesday.
Trade deficit
Imports increased 2.05 per cent to $41.99 billion due to steep fall in petroleum products. Gold imports, however, shot up 154.7 per cent to $ 2.45 billion. Trade deficit in January declined by 3.57 per cent to $14.75 billion.
Both non-petroleum exports and non-petroleum imports posted much higher growth of 11.37 per cent ($25.24 billion) and 15.81 per cent ($32.59 billion), respectively, in January, compared to the same month last year.
The value of non-petroleum and non-gems and jewellery exports in January 2021 was $22.40 billion, registering a positive growth of 13.21 per cent over the same month last year. Non-oil, non-GJ (gold, silver and precious metals) imports were $26.35 billion, recording a positive growth of 5.94 per cent.
“The growth in exports show not only signs of better order booking position, but also indicate further improvement in the coming months and the new fiscal,” said FIEO President SK Saraf, adding that the effectiveness of Covid-19 vaccines has brought the economy back on growth trajectory.
RoDTEP scheme
Saraf pointed out that the government should soon notify the rates for the new RoDTEP (Remission of Duties or Taxes on Export Products) scheme, which will remove uncertainty from the minds of trade and industry and help them forge new contracts.
Exports during April-January 2020-21 were 13.66 per cent lower at $228.04 billion, compared to the same period last fiscal. Imports during the first 10 months were 25.92 per cent lower at $300.26 billion, compared to the first 10 months of 2019-20.
The sectors that contributed to the growth in exports include other cereals, oil meals, iron ore, jute products, tobacco, rice, fruits and vegetables, carpet, handicrafts, carpets, spices, ceramic products and glassware, engineering goods, drugs and pharmaceuticals, electronic goods, tea, cashew, plastic, mica, coal and other ores, minerals, cotton yarn & fabrics, coffee and chemicals.
Decline in exports took place in sectors such as petroleum products, leather and leather manufacturers, readymade garments, man-made yarn/fabrics/made-ups, meat, dairy and poultry products, oil seeds, marine products, and gems and jewellery.
The top-five commodity imports showing a fall in January include silver, newsprint, project goods, leather & leather products and petroleum.
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