Budget Byte: Imports grow after 9 months, signal consumption recovery

This daily series of graphs provides context to some of the critical issues relating to the Union Budget on February 1

Imports grow after 9 months, signal consumption recovery         

 

After a severe dent due to the lockdown, consumption seems to be on a gradual rise. Imports, a marker of consumption, grew 7.5% in December. Rising oil prices may have controlled the fall in oil imports but non-oil imports, which were the first to slip when the crisis began, are now recovering faster.

 

Import revival appears broad-based, raising hope of faster recovery

 

RBI's latest bulletin showed that this recovery was broad-based, as imports grew in 20 of the 30 major sectors. If this continues, the consumption engine that makes for close to 60% of the economy, may hold up the economy. If preli­minary data for January moves in the same direction, the Budget may account for a higher revenue through import duties and GST.