India records highest-ever monthly exports at $37 billion in December

Achieves three-fourths of annual target as exports cross $300 bn in April-Dec

India exported goods worth $37.29 billion in December, the highest ever in a month, as demand for items such as engineering products, petroleum items, and gems and jewellery continued to soar, the preliminary data released by the commerce and industry ministry showed.

India’s merchandise exports in April-December were nearly $300 billion, up 48.85 per cent year-on-year and 26 per cent against the same period in 2019.

This translates into India achieving three-fourths of its annual export target of $400 billion in the first nine months of FY22.

The number has exceeded the exports of 2020-21, which were at $290 billion.

“With $300 billion in the first nine months of 2021-22 we are on track to achieve our target,” Commerce and Industry Minister Piyush Goyal told reporters on Monday.

“If we look at the data from 2016 to December 2021, the export of every month from April to December 2021 is historical. Exports worth $103 billion have been seen in the three months of October, November, and December, the highest to date,” Goyal said.

The data further showed the top 10 major commodity groups, constituting 80 per cent of exports, had grown by 41 per cent year-on-year, with each recording growth. Engineering goods, which constitute 26 per cent of exports, have grown 37 per cent over last year.

Similarly, gems and jewellery exports, which comprise 8 per cent of the kitty, grew 15.8 per cent year-on-year.

India’s merchandise imports were $59.27 billion in December, up 38.06 per cent year-on-year and 49.7 per cent against December 2019.

The trade deficit was $21.99 billion as compared to $15.75 billion a year ago.

Services exports are expected to be $179 billion in the first nine months of the current fiscal year.

“We are well on track to go up to $230 billion or upwards, which will also be a historic high in terms of services exports,” the minister said.

As far as the threat from the Omicron variant is concerned, the minister does not expect any immediate supply chain disruption.

While there could be some short-term disruption, industrial activity is expected to continue, the minister said.

Omicron has been rapidly spreading across various developed nations such as the US, European nations as well as West Asia.

“While we remain cautiously optimistic the Omicron worry is real and it could play major spoilsport. Our key markets in Europe and North America are witnessing a very high number of infections and that could impact the order pipeline. As of now we have not seen any impact but in the next few weeks we will have a clear picture,” Engineering and Export Promotion Council of India Chairman Mahesh Desai said.