At $35 billion in July, India records highest-ever monthly exports

India exported goods worth $35.43 billion in July, the highest first time ever in a month, due to recovery in key global markets and robust demand, according to the data released by the commerce and industry ministry on Friday.

Outbound shipments grew by nearly 50 per cent over July 2020, which can be partly attributed to a favourable base. As compared to pre-Covid level, the growth was 35 per cent from July 2019. Merchandise exports and imports had plummeted in the first few months of 2020-21, with the imposition of lockdown measures to curb the spread of Covid-19.

On a sequential basis, outbound shipments grew at their fastest this fiscal year, witnessing an 9-per cent jump.

The growth was led by higher demand for engineering goods, gems and jewelry, textiles and apparels, chemicals and electronic goods.

“The higher value of petroleum products accounted for more than one-third of the YoY rise in merchandise exports in July 2021. The merchandise trade deficit in July 2021 was almost entirely contributed by petroleum products and precious metals and stones, with the net deficit of the balance items limited to a muted $0.6 billion, shrinking from an average of $2.2 billion in the previous quarter,” Aditi Nayar, Chief Economist at Icra said.

Merchandise imports widened to $46.4 billion in July, up 63 per cent on-year, resulting in a trade deficit of $10.97 billion.

Non-oil imports were estimated at $33.51 billion, up 52.73 per cent on year, while oil imports in July were $12.89 billion up 97.45 per cent in July.

Non-petroleum and non-gems and jewellery exports were $26.12 billion in July, up 28.18 per cent on year. As compared to July 2019, non-petroleum and non-gems and jewellery exports registered a growth of 32.26 per cent.

“An interesting trend witnessed is the growth in export of non-petroleum and non-gems and jewellery items in the month of July 2021. The exports of non-petroleum and non-gems and jewellery items have grown at 32.3% over the pre-covid level (July 2019), much greater than the growth of 28.2 per cent over the July 2020 level,” Prahalathan Iyer, Chief General Manager, Research & Analysis, India Exim Bank said.

India culmulatively exported goods worth $130.82 billion this year, up 74 per cent year-on-year. This accounts for close to a third of its annual export target of $400 billion. Goods worth $172.55 were imported, up 94 per cent year-on-year.