India’s merchandise export in December 2021 touched $37.29 billion, the highest ever monthly number.

The December 2021 merchandise export number represents an increase of 37.0% over $27.22 billion in December 2020 and an increase of 37.55% over $27.11 billion in December 2019.

In the first 9 months of the current fiscal year, India’s merchandise export in April-December 2021 aggregated to $299.74 billion, an increase of 48.85% over $201.37 billion in April-December 2020 and an increase of 25.80% over $238.27 billion in April-December 2019.

Commerce and industry minister Piyush Goyal said that India's merchandise exports will be above $400 billion this fiscal as outbound shipments during April-December crossed $300 billion, exceeding the exports of 2020-21. He also assured that there is no extraordinary increase in imports from China.

“With $300 billion in the first nine months of 2021-22, we are on track to achieve our target…This growth is satisfying and we must aspire for more,” Goyal said.

However, he said the third wave of Covid-19 is affecting developed countries especially the US, Europe, and the Middle East, and problems related to shipping lines can be expected.

“We don’t immediately see any supply disruptions or in the supply chains because by and large the world has seen that the effects of this wave are relatively less harmful and the western world has not restricted any movements as yet. We’ve also not seen instances of lockdowns being announced in any major country,” Goyal said, adding that the only problem could be temporary if the shipping staff gets down with Covid in a big way and cause short-term disruptions.

“Most cases are asymptomatic and recovering very quickly. Hopefully, supply lines and supply activity will continue in full steam,” he said.

December exports grow all-time high, no immediate supply disruptions seen: Piyush Goyal

Keep in pace with rising in India's merchandise exports, the import in December 2021 was $59.27 billion, an increase of 38.06% over $42.93 billion in December 2020, and an increase of 49.7% over $39.59 billion in December 2019. Consequently, India's trade deficit in December 2021 stood at $21.99 billion. The trade deficit for the first nine months of the current fiscal year (during April-December 2021) is at $143.97 billion.

The value of non-petroleum exports in December 2021 was $31.67 billion, registering a positive growth of 27.31% over non-petroleum exports of $24.88 billion in December 2020 and positive growth of 34.92% over non-petroleum exports of $23.48 billion in December 2019.

The cumulative value of non-petroleum exports in April-December 2021 was $257.14 billion, an increase of 39.82% over $183.91 billion in April-December 2020 and an increase of 24.74% over $206.13 billion in April-December 2019.

China imports

Goyal assured that there is no extraordinary increase in imports from China.

He said from FY04 to FY14, when the United Progressive Alliance was in power, imports from China had increased 1160% and there was a 24 times increase in the trade deficit from $1.5 bln in FY05 to $36 billion in FY14.

It was $48 billion in 2014-15 and brought down to $44 billion in 2021.

“It almost remains steady…I can assure you that there is no extraordinary increase with China,” Goyal said, adding that India’s overall trade with Australia increased 102%, South Africa 82%, UAE 65%, and China only 44%.

The minister said that economic activity overall is increasing and there is a huge demand for goods that will spur the investment cycle and encourage the Indian industry to identify products where there is a demand, which is often being imported and can now be manufactured in india competitively.

Goyal said that India’s free trade agreement with the UAE is close to finalization. New Delhi is also concluding the interim agreement with Australia, which will cover “large areas of interest particularly our labor-oriented sectors like textiles, pharma, footwear, leather products, and agricultural products”.

India also plans to launch FTA talks with the UK later this month and put in place an interim agreement by March this year while negotiations with Canada are expected to be launched in the next 2-3 months. The country is in dialogue with Israel to have an FTA with them.

References:

swarajyamag.com