Merchandise exports grow 11 months on trot, up 43% YoY to $35.65 bn in Oct

Merchandise exports grew for the eleventh straight month to $35.65 billion, up 43 per cent on year during October, as external demand continued to remain robust.

Preliminary data released by the commerce and industry ministry showed the growth was driven by higher demand for items, primarily engineering goods, petroleum products, gems and jewellery as well as organic and inorganic chemicals, among other items.

Compared with the pre-Covid level of October 2019, the growth in the value of goods exported was up nearly 36 per cent. Exports have been on an upward trajectory for close to a year now, with the value of exports hovering around $30 billion over the last eight months, amid gradual recovery in key Western markets.

Vijay Kalantri, Chairman, MVIRDC World Trade Center Mumbai said that strong world demand across eight consumer goods categories–carpets, handicrafts, leather goods, spices, marine products, meat (including poultry and dairy products), plastics and electronic goods is seen and is expected to further increase in the future.

“These eight goods account for 12 per cent of our outward shipment. We expect world demand for these eight goods to grow in the coming months as economic growth and income levels recover from the low level of the pandemic,” Kalantri said.

On a cumulative basis, India’s merchandise exports in April-October was $233.54 billion, up 55.23 per cent on year and up 26 per cent compared to the same period in 2019. This translates into India achieving 58 per cent of its exports target of $400 billion for the current fiscal.

Imports continued to remain elevated in October.

With the onset of the festive season, India imported goods worth $55.37 billion, up 62.5 per cent on year and 45.7 per cent as compared to October 2019.

Trade deficit, however, fell to $19.73 billion in October after expanding to a record high of $22.59 billion in September. The widening of the deficit was led by a surge in imports of goods ahead of the festival season and the hardening of commodity prices.

“This is the second consecutive month to post imports of over $55 billion, of which non-petroleum and non-gems and jewellery imports amounted to $32 billion, which shows that the demand for machines and materials to spur the manufacturing activity is growing. Though, this pace would lead to growing trade deficit and associated challenges, it is required to lift up the economic revival,” Prahalathan Iyer, Chief General Manager, Research & Analysis, India Exim Bank said.

Non-petroleum and non-gems and jewellery exports in October were $26.09 billion, up 27.7 per cent year-on-year, and 37 per cent over the October 2019 figure.

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