STOCK MARKET BSE NSE

Exports at 9-year high, pace of manufacturing picks up

PMI survey sees manufacturing at 3-month high; hiring too resumes

Published: 03rd August 2021 08:47 AM  |   Last Updated: 03rd August 2021 08:47 AM   |  A+A-

Exports

For representational purposes (Photo | AP)

By Express News Service

NEW DELHI: Indian’s exports is proving to saviour for the economic recovery as it recorded a robust growth of 47.19% in July to $35.17 billion, highest in nine years, backed by shipments of petroleum, engineering, and gems and jewellery. Imports also grew by 59.38% to $46.40 billion, widening trade deficit to 11.23 billion.According to the provisional data of the commerce ministry, exports of petroleum, engineering, and gems and jewellery in July increased to $3.82 billion, $2.82 billion and $1.95 billion respectively.

Import numbers were driven by of petroleum products and gold imports.Petroleum imports were up by 97% to $6.35 billion, while imports of gold were up by 135.5% to $2.42 billion. Even precious and semi-precious stones’ inbound shipments stood at $1.68 billion in July.“This is the highest-ever exports recorded at least in the previous 9 years as per the data readily available with FIEO. It also is a sign that global trade is recovering fast,” A Sakthivel, President, FIEO, said.

He added that the order booking positions of the exporters have still been impressive.And on the back of healthy exports, manufacturing activities rebounded to a three-month high in July and hiring resumed after a contraction of 15 months. The IHS Markit purchasing managers’ index(PMI) rose to 55.3 in July. It had slipped to 11 months low in June at 48.The report added that international demand contributed to the uptick in total order books. New export orders expanded markedly in July. 

“It’s encouraging to see the Indian manufacturing industry recover from the blip seen in June. Output rose at a robust pace, with over one-third of companies noting a monthly expansion in production, amid a rebound in new business and the easing of some local Covid-19 restrictions,” said Pollyanna De Lima, economics associate director at IHS Markit.

And as output expanded and new orders came, there was a marginal increase in employment, after a 15-month of job shedding. “The PMI also brought the positive news of job creation in the manufacturing sector. Although marginal, the rise in employment was the first since the onset of Covid-19. With firms’ cost burdens continuing to rise, however, and signs of spare capacity still evident, it’s too early to say that such trend will be sustained in coming months,” De Lima said.

According to the report if there is no fresh spoiler from pandemic, there can be 9.7% annual increase in industrial production for calendar year 2021. However firms were still unsure about the path of pandemic.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp