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At US$ 35.2 billion, exports hit record high in July

IBEF:  August 03, 2021

Higher oil prices and stronger demand for gems and jewellery, as well as textiles, helped lift India's monthly exports to a record US$ 35.2 billion in July.

However, the trade deficit increased to US$ 11.2 billion in July, the biggest level since April, while imports increased to US$ 46.4 billion, the third highest monthly figure. Imports increased as gold and crude oil shipments into the country increased.

Exports in July were slightly higher than the US$ 34.5 billion in March, according to preliminary figures issued by the commerce department on Monday. Prior to that, the biggest monthly exports were recorded in March of this year. Non-oil exports, on the other hand, were lower in value than in March 2021, despite the fact that engineering items, medications, and pharmaceuticals were among the fastest-growing sectors.

Overall, July exports were 48% greater than July 2020 and 34% higher than July 2019. “It's also a sign that global trade is rapidly improving... global demand has been healthy over this period, as exporters' order booking positions have remained impressive,” said Mr. A Sakthivel, head of industry lobby group FIEO.

Economists are concerned about the high value of gold entering the country. “Gold imports soared in July 2021, following the economy's gradual reopening. Imports of gold have already surpassed US$ 12 billion in the first four months of this fiscal year, and are on track to surpass last year's US$ 34.6 billion, with a boost expected during the festive season, according to ICRA chief economist Ms. Aditi Nayar.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.