India’s goods exports in January 2022 grew 25.28 per cent (year-on-year) to $34.5 billion, buoyed by a near-doubling of petroleum products shipment, and a rise across top sectors such as engineering goods, gems & jewellery, readymade garments and electronics.

Total exports in April-January 2021-22 grew 46.73 per cent to $335.88 billion edging closer to the $400 billion target set for financial year 2021-22 by the Commerce Department.

Imports in January 2022 registered an increase of 23.54 per cent to $51.93 billion with a sharp rise in imports of electronic goods, petroleum products, fertilisers, edible oil and silver. Import of gold, however, plummeted 40.52 per cent in the month to $2.4 billion, as per quick estimates of trade data released by the government on Tuesday. 

Trade deficit

Trade deficit in January 2022 widened to $17.42 billion compared to $14.49 billion in January 2021.

“Export performance has been promising with monthly exports remaining above $30 billion since the beginning of the year. Imports have been above $50 billion in the last five months; the trade deficit is likely to touch the peak level of $190 billion witnessed in FY13,” pointed out Prahalathan Iyer, Chief General Manager, Research & Analysis, India Exim Bank. However, the trade generated under the services sector could partially offset the deficit by more than $100 billion, he added.

Imports in April-January 2021-22 were at $495.75 billion registering a growth of 62.65 per cent.Trade deficit in April-January 2021-22 more than doubled to $159.87 billion against a trade deficit of $ 75.87 billion in April-January 2020-21.

Last fiscal, India’s exports had taken a hit due to Covid-19 pandemic related disruptions and fell by about 7 per cent to $291 billion. Global demand has since then been on the road to recovery helping in a bounce back of Indian exports.

“On the back of strong recovery in advanced economies and government’s aggressive exports push, engineering goods export is well on track to achieve the $107 billion target set for the current fiscal,” said Mahesh Desai, Chairman, Engineering Export Promotion Council. 

Striking an optimistic note about the future, Desai said that the sector would target total engineering exports of $134 billion next fiscal, adding that the EEPC was hopeful that the RBI would soon notify extension of interest equalisation scheme for exporters which will give further impetus to exports.

It was encouraging that most top export sectors performing well in January 2022 were labour intensive such as petroleum products, engineering goods, chemicals, cotton yarn/fabrics/made-ups, handloom products, gems & jewellery, readymade garments, marine products, plastic and electronic goods, said A Sakthivel, President, FIEO.

However, the continued rise of imports was a point of concern and needed to be analysed, he said.

Non-petroleum and non-gems & jewellery exports in January 2022 increased 20.13 per cent to $ 27.10 billion, indicating export growth in sectors beyond the two major ones. Non-petroleum, non-gems & jewellery imports increase 31.33 per cent to $ 34.62 billion during the month.

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