India’s goods exports increased 24.22 per cent (year-on-year) to $38.19 billion in April 2022, despite the uncertain global environment, owing to sharp growth in sectors such as petroleum products, electronic goods and chemicals.

Imports during the month, too, registered a 26.55 per cent growth to $58.26 billion, with the highest increase in petroleum, coal and electronic goods sectors, according to preliminary trade data for April shared by the Commerce & Industry Ministry on Tuesday.

Trade deficit at $20.07 billion was 31.23 per cent higher than in the year-ago period.

Maintaining momentum

Exporters are optimistic that the free trade agreements (FTAs) that India has signed recently with the UAE and Russia and the ones in the pipeline, will help the sector maintain the growth momentum.

“Starting the fiscal with such an impressive beginning will further add to the motivation of the exporting community for much higher growth during the financial year ... the benefits of the newly-signed FTAs and the PLI scheme will further help us in building on the milestones achieved during the previous fiscal,” said FIEO President A Sakthivel.

Export of non-petroleum goods increased 12.32 per cent to $30.46 billion whereas imports grew 9.87 per cent to $35.27 billion during the month.

‘Manufacturing powerhouse’

April exports have grown in tandem with the 2021-22 performance when outbound shipments touched a record high of $419.65 billion (growing over 40 per cent), as the world bounced back from the Covid-19 induced slowdown. Imports increased to $611.89 billion, resulting in a trade deficit of $192.24 billion.

Although Indian exporters are concerned about the impact of a prolonged Russia-Ukraine war and with the WTO recently bringing down its global trade growth forecast for 2022 to 3 per cent from 4.7 per cent earlier, they, so far, do not seem to be significantly affected.

“Despite geopolitical challenges, engineering goods exports have continued the growth momentum set in the last financial year. Exports of engineering items in value terms stayed above $9 billion in April and recorded 15 per cent year-on-year growth. This clearly shows India is gradually moving towards becoming a manufacturing powerhouse in the world,” according to Mahesh Desai, Chairman, EEPC India.

While the trade deals with UAE and Australia are expected to give a boost to the sector, the proposed pacts with other countries such as the UK and Canada would further give an impetus to exports, he added.

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