India Exports Slip for Second Straight Month in Nov as China Grows 21.1%

Exports last month were at $23.52 billion, as against $25.77 billion in the same month in 2019, data from the Commerce and Industry Ministry showed. On the other, China exports grew by 21.1%, the largest rise since Feb when Covid-19 first surfaced.

Merchandise exports fell 8.74 per cent in November, continuing a trend of negative growth after a short positive growth spurt in September. Exports last month were at $23.52 billion, as against $25.77 billion in the same month in 2019, data from the Commerce and Industry Ministry showed.

The drop was mainly on the back of decline in shipments of products like petroleum (-59.73 per cent), leather goods (-29.80 per cent), man-made fabrics (-11.06 per cent), engineering goods (-8.12 per cent) and organic and inorganic chemicals (8.06 per cent).

Imports, too, fell 13.32 per cent to $33.39 billion in November from a year ago. The trade deficit narrowed to $9.87 billion against $12.75 billion in November 2019. However, the deficit rose sequentially from $8.78 billion in October.

According to Federation of Indian Export Organisations president Sharad Kumar Saraf, the drop in exports are a result of supply-side disruptions, including restricted container movement and declining petroleum exports due to its crashing prices.

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Demand for Chinese Goods Soars

The year 2020 was supposed to be when the U.S. reduced trade with China, but imports are surging as the year draws to a close, fueled by stay-at-home shoppers who are snapping up Chinese-made products.

The surge is a byproduct of the pandemic, which has Americans channeling money otherwise used for vacations and entertainment into household items and toys. Demand is so strong that the cargo industry has been overwhelmed, with ports snarled and holiday deliveries delayed. “You’re trying to stuff 10 pounds of potatoes in a five-pound bag,” said the director of the Port of Los Angeles, which has seen more traffic in recent months than in its 114-year history.

Despite Trump administration restrictions on Chinese goods, including tariffs on its imports, there is little sign that global supply chains are returning to the U.S.

The numbers: In November, China reported a record trade surplus of $75.43 billion, propelled by an unexpected 21.1 percent surge in exports compared with the same month last year. Leading the jump were exports to the United States, which climbed 46.1 percent to $51.98 billion, also a record.