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India’s export of goods in May posted a high growth of 69.35 per cent (year-on-year) to $ 32.27 billion, fuelled by steep rise in sectors such as gems and jewellery, engineering goods, petroleum products and readymade garments, according to the quick estimates released by the Commerce & Industry Ministry on Tuesday.
While the growth rate of exports in April (year-on-year) was much higher at 195.72 per cent, it was mostly due to a low-base. The actual value of exports at $30.63 billion in April was lower than the value of exports in May.
Imports rise
The country’s imports in May increased 73.64 per cent to $38.55 billion, led by growth in items such as electronic goods, gold, petroleum and chemicals. Imports in April were higher at $45.45 billion, posting a 167 per cent growth (year-on-year). Trade deficit during May almost doubled to $6.28 billion, compared to the trade deficit of $3.15 billion in May last year.
A part of the high growth in exports in May can be attributed to a low base as manufacturing and exports had taken a hit in May last year due to the Covid-19-induced lockdown, but there is also an improvement in performance as reflected in the 8.11 per cent growth in exports compared to exports in May 2019, which were unaffected by the pandemic. Imports in May were, however, lower by 17.42 per cent compared to imports in May 2019.
“Exports growing by over 8 per cent even on the base of May 2019 reflects a positive trend for the sector...the gradual opening up of major global markets and improvement of situation in the country is expected to push exports growth further,” said FIEO President SK Saraf.
Growth in labour-intensive sectors such as cereal preparations, gems and jewellery, engineering goods, leather and leather products, ceramic products and glassware, cotton yarn/fabrics/made-ups, handloom products, marine products, spices and carpets, augurs well for the job scenario, which is most relevant in the current context, he added.
Outbound shipments
The growth in outbound shipments has been robust in the last few months and the outlook remains positive for the current year, but rising cost of key raw materials especially steel is an area of concern, said EEPC India Chairman Mahesh Desai.
“Soaring prices of various metals is a big challenge for the engineering goods manufacturers, which were badly affected by the Coronavirus outbreak and the subsequent lockdowns,” he said.
Exporters want the government to announce the rates of input tax refund under the new RoDTEP scheme soon, and also provide more targeted support to maintain the growth momentum.
Total value of exports for the period April-May 2021 was $62.89 billion, posting a growth of 113.85 per cent over the same period last fiscal.
Compared to April-May 2019, exports in April-May 2021, registered a growth of 12.54 per cent.
Total value of imports for the period April-May 2021 was $84.27 billion, recording a growth of 114.31 per cent over imports in the comparable period last year.
Imports in April-May 2021 were, however, 5.39 per cent lower than imports in the same period of 2019. Trade deficit in April-May 2021 at $21.38 billion was more than twice the deficit of $9.91 billion in April-May 2020
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