India’s exports touched $8.4 billion during the first week of July 2021, rising almost 35% from the corresponding period in 2019-20 and 63% higher than a year ago, when the businesses had been impacted due to the nationwide lockdown.Export growth was led by petroleum products, which rose by 65% on soaring global prices, while the value of engineering goods and inorganic chemicals shipped from the country went up by 50% and 36%, respectively. Shipments to China shot up along with those to the US and Indonesia and the exports have remained above $30 billion for three consecutive months starting from March, when shipments hit a record $34.45 billion. Early recovery in the US and Europe due to the decline in coronavirus cases overseas and faster vaccination, is fuelling demand for Indian goods. Exports are expected to support growth in FY22 by providing a cushion against the sharp correction in domestic demand due to cautious consumer sentiment on the back of rising health costs during the on-going second wave of the coronavirus pandemic.Top countries to which exports increased include the US (59.9%), United Arab Emirates (57.9%) and Bangladesh (212%).The top five commodity groups of export which have registered growth, compared to June 2020, were iron ore (134.46 per cent), other cereals (299.29 per cent), cereal preparations and miscellaneous processed item (56.63 per cent), organic and inorganic chemicals (62.41 per cent), and oil meals (53.99 per cent).
The Reserve Bank of India (RBI) on July 1st week urged the government to provide enhanced and targeted policy support for exports, taking advantage of the rising external demand for Indian goods. “With external demand strengthening, a rebound in global trade is taking hold, which should support India’s export sector. Global demand conditions are expected to improve further by fiscal stimulus packages and the fast progress of vaccination in advanced economies.
As per the government data of July 2, the country reported its highest-ever merchandise exports at $95 billion in the first quarter of the current fiscal year. The exports recorded in the April-June quarter is 85 per cent higher than the exports registered in the corresponding period last year. In June, the country's trade deficit widened to $ 9.4 billion as exports rose by 47.34 per cent to $ 32.46 billion, driven by growth in sectors such as petroleum products, gems and jewellery, and engineering, according to data released by the commerce ministry on 2nd July 2021. According to the Commerce Minister Shri Piyush Goyal, spices and oil meals registered double-digit exports growth in the first quarter of fiscal year 2021, compared to previous financial years.
In June 2021, the value of non-petroleum exports was $ 28.51 billion, registering a positive growth of 41.8% over $ 20.11 billion in June 2020 and positive growth of 27.33% over $ 22.39 billion in June 2019.The cumulative value of non-petroleum exports in April-June 2021 was $ 82.45 billion, an increase of 76.76% over $ 46.65 billion in April-June 2020 and an increase of 18.13% over $ 69.8 billion in April-June 2019.The value of non-petroleum and non-gems & jewellery exports in June 2021 was $ 25.69 billion, registering a positive growth of 38.53% over $ 18.54 billion in June 2020 and positive growth of 33.61% over $ 19.23 billion in June 2019.
As India begins on its journey of self-reliance and export expansion in these difficult times, the states need to take on the reins and adapt their efforts with the emerging trends in globalisation, which can increase exports from India in the coming years.