NEW DELHI: India’s exports stood at $33.8 billion in September compared to $27.5 billion a year ago. However, increase in global commodity prices led to spike in imports, at $56.4 billion, in September compared to $30.52 billion a year ago, pushing the country’s trade deficit to a record high of $22.59 billion.
Exports basket growth was led by high value products--petroleum, engineering goods, electronic goods, and gems & jewellery, which rose in double digits on yearly basis. According to A Sakthivel, President, FIEO, recovery in the global economies added with the expectation of buoyant order booking position for the coming months, especially during the festive season, has also led to such continuous growth in exports.
“Crossing $197 billion in merchandise exports during the first half of the financial year in itself is a spectacular performance during these challenging times, which further reiterates the dedication, commitment and hard work of the exporters coupled with supportive government policies,” said Sakthivel.
While pre-festive season boosted inbound shipments, imports of petroleum almost rose by three-folds to $17.4 billion in September over $5.8 billion in the same month of 2020. Import of gold was up by 750.6% at $5.1 billion compared to $0.6 billion a year ago.
Coal shortage also led to a rise in the imports of fuel and related items by 82.9% to $2.2 billion compared to 1.2 billion a year ago. Sakthivel emphasised the need to analyse imports. Aditi Nayar, chief economist ICRA, said that the current account deficit is pegged at $25-28 billion for FY22.