India’s merchandise exports showed a huge growth of 58 per cent in March led by outbound shipment of engineering goods, gems and jewellery besides drugs and pharmaceuticals, touching a record $34 billion compared to the corresponding month in the previous year. Imports too rose by 53 per cent touching $48 billion leading to a trade deficit of $14.1 billion.

While the growth in exports can partially be attributed to a low base, it also reflects a healthy economic revival.

In March 2020, India went into a lockdown. But even before the lockdown exports had thinned due to the coronavirus pandemic. Outbound shipment collapsed 35 per cent while imports too dropped 29 per cent due to lockdown in several countries.

However, in value terms, exports as well as imports have shown healthy recovery compared from February. In February, Exports stood at $28 billion and imports were at $41 billion.

imports were led by a hike in demand for gold, electronic goods and machinery.

The World Trade Organisation (WTO) has revised upwards its projections for world merchandise trade volume for 2021. It said that global trade volume would grow by 8 per cent after having fallen 5.3 per cent in 2020. In October, it had projected a growth of 7.2 for 2021.

Indian exporters will be particularly happy as import growth for the country’s largest trading partners – US and the EU could grow at 11.4 per cent and 8 per cent respectively.

Meanwhile, the Federation of Indian Export Organisations (FIEO) said that the government must address a few key issues related to easing of trade roadblocks. The Foreign Trade Policy which provides export-linked incentives, was to be in place by April 1 but has now been delayed till September, dampening overall sentiments.

Earlier, FIEO also underlined the need to ensure adequate availability of containers, softening of freight charges, and resolving risky exporters issues.