India’s January merchandise exports rose over 5.37 per cent on a year-on-year basis, preliminary data showed. Accordingly, the country’s merchandise exports during the month under review grew to $27.24 billion from $25.85 billion in January 2020.
As per the data, in January 2021, the value of non-petroleum exports rose by 11.37 per cent over January 2020 to $25.24 billion.
“The value of non-petroleum and non-gems and jewellery exports in January 2021 was $22.40 billion as compared to $19.79 billion in January 2020, registering a positive growth of 13.21 per cent,” a Ministry of Commerce and Industry statement said on the basis of preliminary data.
“The cumulative value of non-petroleum and non-gems and jewellery exports in April-January 2020-21 was $188.73 billion, as compared to $197.94 billion for the corresponding period in 2019-20, exhibiting a decrease of 4.65 per cent,” it added.
In terms of imports, India’s inbound shipments in January 2021 increased by 2.05 per cent to $41.99 billion from $41.15 billion during the corresponding period of 2020.
“Merchandise imports during April-January 2020-21 were $300.26 billion, as compared to $405.33 billion during the same period last year, exhibiting a negative growth of 25.92 per cent,” the statement said.
Last month, oil imports were $9.40 billion, as compared to $13.01 billion in January 2020, a decline of 27.72 per cent.
“Non-oil imports in January 2021 were estimated at $32.59 billion, as compared to $28.14 billion in January 2020, showing an increase of 15.81 per cent. Non-oil, non-GJ (gold, silver and precious metals) imports were $26.35 billion in January 2021, recording a positive growth of 5.94 per cent, as compared to non-oil and non-GJ imports of $24.87 billion in January 2020,” the statement said.
Consequently, India’s trade deficit stood at $14.75 billion in January 2021.
However, on a year-on-year basis, the deficit declined by 3.57 per cent at $15.30 billion.
“The rise in both merchandise exports and imports in January 2021 is heartening, signifying a continued strengthening of the domestic growth recovery,” said Aditi Nayar Principal Economist at ICRA.
“With the merchandise trade deficit having risen to US$14-15 billion over the last two months, we expect the current account balance to slip back into a deficit in H2 FY2021,” Nayar added.
According to the Founder Chairman of TPCI, Mohit Singla: “India’s merchandise exports growth for the month of January 2021, shows that India’s trade has been on the path of a quick recovery.
“This clearly shows that the global trade flow has been streamlining fast and bottlenecks owing to the pandemic are easing out gradually. Also, it is a reflection that Indian products have been sustaining its global demand despite challenges and resilience efforts of our exporters have started bearing fruits again.”