January Exports Rise by 25.28 per cent to $34.5 billion
Strong
recovery in advanced economies help exporters inch closer to the target of $400
billion for the current fiscal
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, 15 February
2022.
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.