India’s Export trade rises by 50% in July ’21: Trade Balance declines 127%

New Delhi, Aug 13 (UNI) Led by key items such as petroleum products, gems & jewellery and engineering goods, merchandise exports in July 2021 rose 50% to US$ 35.43 billion as compared to US$ 23.64 billion in the same month last year.
Favourable base, strong recovery in European and US markets and declining Corona virus cases globally have helped clock impressive performance last month.
Imports in July 2021 were US$ 46.40 billion which is an increase of 62.99% over the corresponding period last year, as per data released by the Ministry of Commerce and Industry.
The trade balance for July 2021 stood at US$ (-) 10.97 billion as against US$ (-) 4.83 billion in July 2020, a decline of 127.37%.
As compared to July 2019 (US$ (-) 14.20 billion), trade balance in July 2021 exhibited a positive growth of 22.71%.
“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 US$0.6 billion, shrinking from an average of US$2.2 billion in the previous quarter. As the economy recovers further, we expect the non-oil non-precious trade deficit to revert to an average of US$2.5 billion per month over the next few quarters,” said Aditi Nayar, Chief Economist, ICRA.
The commodities/commodity groups which recorded positive growth during July 2021 vis-à-vis July 2020 are petroleum products (230.98%), gems & jewellery (130.5%), other cereals (108.86%), man-made yarn/fabs./made-ups etc. (58.93%), cotton yarn/fabs./made-ups, handloom products etc. (48.35%), marine products (47.68%), electronic goods (47.58%) and engineering goods (42.59%).
“The higher value of petroleum products accounted for more than one-third of the YoY rise in merchandise exports in July 2021. Aside from that, engineering goods, gems & jewelry, textiles and apparels, chemicals and electronic goods were the dominant drivers of the enthusing expansion in merchandise exports to a record high in July 2021,” said Nayar.
Oil imports in July 2021 were US$ 12.89 billion which was 97.45% higher compared to US$ 6.53 billion in July last year. As compared to July 2019, oil imports in July 2021 were 32.27% higher in dollar terms.
Non-oil imports in July 2021 were estimated at US$ 33.51 billion which was 52.73 percent higher as compared to the corresponding period last year.
Non-oil and non-gold imports were US$ 29.30 billion in July 2021, recording a positive growth of 45.40% as compared to non-oil and non-gold imports of US$ 20.15 billion in July 2020.
India’s overall exports (merchandise and services combined) in July 2021 are estimated to be US$ 54.95 billion, exhibiting a positive growth of 36.19% over the same period last year and a positive growth of 23.24% over July 2019.
Overall imports in July 2021 are estimated to be US$ 57.29 billion, exhibiting a positive growth of 50.15% over the same period last year and a positive growth of 10.60% over July 2019.
“With pandemic situations on the ebb and strong recovery seen in European and American markets, the (engineering goods) sector is very much on the sustained recovery path. We hope the momentum would continue and the sector closing the year on a very positive note,” said EEPC Chairman Mahesh Desai.