Recording growth for the seventh month in a row, India’s exports rose by 48.34 per cent to USD 32.5 billion in June on account of healthy growth in shipments of petroleum products, gems and jewellery, and chemicals, even as trade deficit stood at USD 9.37 billion, according to the official data. Exports in June last year stood at US 22 billion and USD 25 billion in June 2019. In May 2021, outward shipments were worth USD 32.27 billion and USD 31 billion in April this year, the data released by the Commerce Ministry on Thursday showed.
Imports in June too rose by 98.31 per cent to USD 41.87 billion, leaving a trade deficit of USD 9.37 billion as against a trade surplus of USD 0.79 billion in the same month last year.
During April-June 2021, the exports increased by 85.88 per cent to USD 95.39 billion. Imports expanded to USD 126.15 billion during the first three months of the fiscal as against USD 60.44 billion in the same period last year, the data showed. Trade deficit during the quarter was aggregated at USD 30.75 billion as against USD 9.12 billion during April-June 2020. The deficit during June has increased as compared to May when it was USD 6.28 billion.
Oil imports in June were USD 10.68 billion, which were 116.51 per cent higher compared to USD 4.93 billion in June 2020. During April-June 2021, the imports stood at USD 31 billion as against USD 13.08 billion during the same quarter previous fiscal. India’s overall exports (goods and services combined) in April-June 2021, according to the data, are estimated to be USD 147.64 billion, exhibiting a positive growth of 50.24 per cent over the same period last year. Gold imports in June grew by about 60 per cent to about USD 970 million.
Commenting on the data, Federation of Indian Export Organisations (FIEO) President A Sakthivel said that the need of the hour is to soon notify the RoDTEP rates to remove uncertainty from the minds of the trade and industry. ICRA Ltd Chief Economist Aditi Nayar said that with surging exports and relatively subdued gold imports in May-June 2021 dampening the aggregate trade deficit to a three-quarter low USD 31 billion in Q1 FY’2022, “we expect the current account to revert to a small surplus in that quarter”. “In line with the sequential recovery displayed by most high frequency indicators, non oil non gold imports rose in June 2021, reflecting a pickup in demand with the gradual unlocking as well as the high commodity prices,” she said.