Owing to an uptick in global orders and continuing low base effect, India's merchandise trade shot up by a major 48.3 percent in June. Exports had risen by 69.7 percent in May, 193.63 percent in April and 60 percent in March.
Data released by the Commerce and Industry Ministry on July 15 showed outbound trade rose to $32 billion in June, from $21.9 billion in June, 2020. Compared to June, 2019, export growth was nearly 30 percent in the latest month.
The rise is also partly due to the extremely low volume of trade beginning in March last year when the nationwide lockdown had been imposed. Trade had been among the first industries to be hit in the initial days of the pandemic, after a nationwide lockdown was announced on March 23. However, the impact of lockdown in other nations also impacted trade had already begun, thus adversely affecting shipping flows even before that.
After a difficult year, exports had however began rising since December. In February, before the low base effect kicked in, growth was a marginal 0.67 percent.
All major export segments such as Processed petroleum, electronics, engineering goods, gems & jewellery, textiles and pharma saw major growth in June. Exporters say there has been a continued revival not only in the order booking positions but also in the demand from across the globe.
Imports also rise
In June, imports saw an equally large rise, going up by a huge 98.3 percent to $41.8 billion. Operating on a similar low base, imports had risen by 73.6 percent in May, 163 percent in April and 53.7 percent in March.
The largest part of the import bill - petroleum and crude oil - stood at $9.45 billion, down from $10.87 billion and $10.27 billion worth of imports in the previous two months. In the latest month, gold imports fell to $0.67 billion.
India's merchandise trade deficit in May stood at $9.37 billion, down from $0.79 billion in May. On a monthly basis, India's trade position has returned to the familiar deficit territory after witnessing a rare trade surplus of $800 million last year at the height of the COVID-19 pandemic-induced national lockdown.
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