India registered an export growth of 5.5 per cent in January compared to the corresponding period in the previous financial year, touching $27.24 billion, thanks to a boost in outward shipment of pharmaceutical and engineering goods.
According to official data, exports of pharmaceuticals grew at 16.4 per cent while engineering goods increased by 19 per cent.
Trade deficit – the difference between imports and exports– during the month stood at $14.75 billion lower than $15.3 billion in the corresponding month of the previous year. Trade deficit in December 2020 stood at $15.44 billion. Imports in January 2021 rose 2 per cent to USD 42 billion.
The Federation of Indian Export Organisations (FIEO) said that the monthly exports further moved northward towards positive territory with almost all major export category products showing impressive growth with signs of further revival.
FIEO President Sharad Kumar Saraf Positive said that growth of about 5.5 per cent “show not only signs of better order booking position but further improvement in coming months and the new fiscal.”
Effectiveness of the Covid-19 vaccines have also led to revival of economic activities which is set to lead to a V-shaped recovery.
Exports for items such as oil meals, iron ore, tobacco, rice, fruits and vegetables, carpet, handicrafts and spices among other things have also gone up while outward shipment of petroleum products, ready-made garments and leather has dropped.
Meanwhile, imports of gold increased by about 155 per cent to $2.45 billion in January. Imports of pulses, precious and semi-precious stones, chemicals, cotton raw and waste, vegetable oil and machine tools have also increased.
FIEO underlined the need to ensure adequate availability of containers, softening of freight charges, and resolving risky exporters issues. “Besides long pending demand for the creation of an Export Development Fund for marketing of Brand India products and various other infrastructure bottlenecks with regard to customs and port clearances, will further help in giving a boost to our exports taking it to pre-Covid growth trajectory,” Saraf said in a statement.
