Tag: Merchandise exports

Trade deficit falls YoY in Sept 2023, alongside decline in key merchandise export 

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s trade deficit in September 2023 marked a significant year-on-year reduction, decreasing from $15.03 billion in September 2022 to $4.92 billion. However, this decline in the trade deficit was mirrored by a decrease in overall merchandise exports, falling from $35.39 billion in September 2022 to $34.47 billion in September 2023. The Commerce Ministry attributed this export decline to weakened global demand and other contributing factors.

Citing a decline in unit value realisation from export of petroleum products from $1094.28/ton last year to $727.76/ton this year, the Ministry said that despite a rise noted in the volume of petroleum exports compared to last year, the amount being reflected in trade data was far lesser due to decline in global prices.

The government attributed the decline in exports of gems and jewellery to lower global demand, issues in sourcing of diamonds and a huge duty on gold imports apart from geopolitical factors like the conflicts between Russia and Ukraine, and Israel and Palestine.

Excluding gems, jewelry, and petroleum product exports, September 2023 recorded a 1.86% increase in year-on-year exports, the ministry said. Importantly, merchandise imports from April to September 2023 registered a substantial 12.23% decline.

Despite the WTO forecast for global growth falling from 1.7% to 0.8% by October 2023, the government said that green shoots are being noted in India’s exports, particularly in the photovoltaic and electronics sector due to improved export competitiveness after the advent of PLI schemes.  In August 2023, merchandise exports grew by 3.88% following data reconciliation, providing a positive development amidst a challenging global scenario.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India exports rise to record high of $418 bn in FY22

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s merchandise exports spurted to a record high of USD 418 billion in the 2021-22 fiscal on higher shipments of petroleum products, engineering goods, gem and jewellery and chemicals, according to official data released on Sunday.

Outbound shipments touched an all-time monthly high of USD 40.38 billion in March 2022, Commerce and Industry Minister Piyush Goyal told reporters here. Exports stood at USD 35.26 billion in March 2021.

Merchandise exports were worth USD 292 billion in 2020-21. India’s merchandise exports had breached the targeted USD 400 billion mark on March 21 this year. The key export sectors, which contributed to record healthy growth, include petroleum products, engineering, gems and jewellery, chemicals and pharmaceuticals. The top export destinations are the US, the UAE, Bangladesh, the Netherlands, Singapore, Hong Kong, the UK, Belgium and Germany.

Also Read: GDP growth estimated at 7.4% for 2022-23: FICCI survey

“Merchandise exports from India have reached USD 417.8 billion in the current financial year. This figure excludes the figures from non-EDI Ports and adding that, it is likely to exceed USD 418 billion, an all-time high in India’s export history,” the Commerce and Industry Ministry said in a statement. Goyal said that efforts by exporters and industry associations, coordination among different departments and state governments have resulted in this achievement.

Also Read: Unemployment rate decreasing in India: CMIE

Commodities that recorded a positive growth in exports during April 2021-March 2022 over the previous fiscal include petroleum, cotton yarn/fabrics/madeups, handloom, gems and jewellery, engineering goods (USD 111 billion as against USD 76 billion), electronic engineering products (USD 15.58 billion as against USD 11 billion), leather goods, chemicals, plastic and marine products. The exports have also seen a significant increase to different countries, especially, developed countries, it said.

Also Read: India on cusp of major economic recovery, says NITI Aayog V-C Rajiv Kumar

“Notwithstanding the challenges posed by successive waves of Covid, India’s merchandise trade performance has shown impressive growth and exports remained above USD 30 billion for 12 consecutive months during April 2021 to March 2022,” Goyal said. Agriculture exports have crossed USD 48 billion during April 2021-March 2022.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Export reaches $390 bn as of March 14: Piyush Goyal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Commerce and Industry Minister Piyush Goyal has said India’s merchandise exports have reached almost USD 390 billion as of March 14 and will cross USD 400 billion in the current financial year. He also said the auto components industry has, for the first time, recorded a trade surplus of USD 600 million.

The minister urged automakers to buy local products and substitute imports. He said this while addressing an event of the automotive component sector on March 16.

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Goyal pointed out that India could no longer afford to be closed and protective but will have to open up domestic markets. Further, he asked the auto industry to invest more in R&D (research and development), especially e-mobility, set higher benchmarks for performance and aspire to take five Indian companies in top-50 global automotive suppliers club.

“India’s merchandise exports have reached almost USD 390 billion as of March 14 and will certainly cross USD 400 billion in the current fiscal,” the commerce ministry said on Thursday quoting the minister.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Exports up 26.40% to $25.33 billion during February 1-21

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The country’s merchandise exports rose by 26.4 percent to USD 25.33 billion this month till February 21 on account of healthy performance by sectors including gems and jewellery, engineering, textiles and chemicals, according to the commerce ministry data. The exports during February 1-21 last year stood at USD 20.04 billion.

The outbound shipments during February 15-21 grew by 26.87 percent to USD 9.02 billion as compared to USD 7.11 billion in February 15-21 last year, the preliminary data showed. Cumulatively, exports during April-January 2021-22 rose by 46.53 percent to USD 335.44 billion as against USD 228.9 billion in the same period last year.

The ministry is hopeful that the exports would cross the USD 400 billion target by the end of this fiscal.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India’s growing merchandise exports: Has it entered a prolonged phase of growth?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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If one solace that India can take from the pandemic, it is the growing number of merchandise exports that the country is witnessing. India’s merchandise exports in April-July 2022 were $130.53 billion, an increase of 73.51 percent over the same period last year, helped by the lower base of pandemic impact.

The growth was still impressive when compared to pre-COVID levels. A comparison on a 2-year CAGR basis suggests that merchandise exports grew by 21.82 percent over $107.15 billion in April-July 2019-20. Total exports in July was at $35 billion, the highest-ever monthly performance.

In a recent event, the commerce minister hailed FY22 as being on its way to be a record-breaking year for exports. And buoyed by these positive signals, the ministry has set the merchandise export target of $419 billion in FY22. It has also prepared a roadmap to the overall exports target of $2 trillion by 2030 (contributed equally by the merchandise and services side).

India’s Export Basket

Historically, Agri and petroleum-based products have been the major components of India’s export basket. But, that basket has expanded over a period of time, led by engineering goods, petroleum products, gems and jewellery, textiles and garments, chemicals and pharmaceuticals.

The total share of petrochemicals in exports has declined to 9 percent in FY21 from 21 percent in FY14. It recovered to 14 percent in the current fiscal in correlation with a spike in crude prices. However, it is again expected to cool off, with global crude prices expected to moderate. Agri based and labour-intensive products like coffee, tea, mate and spices, carpets and footwear are no longer on the list of top exports. Aluminium and floating structures like ships and boats are now part of the top exports.

Electrical and mechanical machinery, vehicles, articles of iron and steel, plastics have also all improved on their base and increased their share in the overall exports. Certain other products like fur skins and artificial fur, arms and ammunition, furniture, aircraft and spacecraft and zinc and their articles are at a primary stage, but they are growing rapidly and showing great promise.

The Policy Support

India has recently launched the Production Linked Incentive Scheme (PLI) intending to promote competition and bring private investment in those sectors showing potential.

It includes sectors like advance chemistry cell (ACC) battery, electronic/technology products, automobiles and auto components, pharmaceuticals drugs, telecom and networking products, textile products (MMF segment and technical textiles), food products, high-efficiency solar PV modules, white goods (ACs & LED) and specialty steel.

The recently announced RoDTEP (Remission of Duties and Taxes on Export Products) scheme in place of the existing MEIS (Merchandise Exports from India Scheme) is also expected to make exports more attractive by offering refunds on the embedded taxes and duties to exporters. It was previously non-recoverable.

The Macro Environment

The environment appears in favour of India’s exports as the countries are looking to rebuild their economies. India’s growing stature as China’s alternative and rapidly expanding foreign investment are the factors in India’s favour.

While there has been a wide debate about India opting out of RCEP, it is a sign of a country growing in confidence in its own capabilities. With its large workforce behind it, India has rejected the second class treatment that it has been receiving across global forums. Instead, the stress is on signing independent free trade agreements which treat the country on an equal footing.

The Commerce Ministry suggested that it has been working on independent FTAs wins deals with several countries like Australia, UK, European Union, UAE, and other middle eastern countries are in the pipeline.

The author, Vaibhav Agrawal, is CIO at Teji Mandi. The views expressed are personal

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

January trade deficit widens to $14.73 billion

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The trade deficit widened to $14.73 billion in January, mainly pushed by rise in gold imports, the trade ministry said in a statement on Friday.

Trade deficit had narrowed to $13.08 billion in December.

In January, merchandise exports rose 3.74 percent from a year earlier to $26.36 billion, while imports were up 0.01 percent to $41.09 billion, data showed.

The gold imports in January rose 38.16 percent year-on-year to $2.31 billion.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India’s May trade deficit widens to $14.62 billion, says trade ministry

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s merchandise exports in May rose 20.2 percent year-on-year, the trade ministry said on Friday, but the trade deficit widened to $14.62 billion, driven mainly by a 50 percent surge in its oil import bill, on higher global prices.

In April trade deficit stood at $13.72 billion.

India’s gold imports fell 29.85 percent year-on-year to $3.48 billion in May from a year ago, the statement said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow