India's exports reach $35.43 billion in July 2021; 49.85% increase compared to 2020

According to figures issued by the Commerce and Industry Ministry on Friday, India exported goods worth $35.43 billion in July, the biggest amount ever in a month, thanks to a recovery in key global markets and strong demand. Outbound exports increased by roughly 50%, 49.85% to be exact in July 2020. From July 2019, the increase was 35% as compared to the pre-Covid figure. With the implementation of lockdown measures to stop the spread of COVID-19, merchandise exports and imports dropped in the first few months of 2020-21.

Outbound shipment climbed at the strongest rate

According to Business Standard, outbound shipments climbed at their strongest rate this year, with a 9-per cent increase. A higher demand for engineering goods, gems and jewellery, textiles and apparel, chemicals, and electronic goods fueled the expansion. Icra's Chief Economist, Aditi Nayar, stated that in July 2021, the increased value of petroleum products accounted for more than a third of the year-over-year (YoY) increase in merchandise exports. Petroleum goods and precious metals and stones contributed nearly exclusively to the merchandise trade deficit in July 2021, with the net deficit of balance items confined to a subdued $0.6 billion, down from an average of $2.2 billion in the previous quarter.

In July, merchandise imports increased by 63% to $46.4 billion, resulting in a trade deficit of $10.97 billion. Non-oil imports were anticipated to be $33.51 billion, up 52.73 per cent from the previous year, while oil imports were $12.89 billion, up 97.45 per cent. Exports of non-petroleum, non-gems and jewellery totalled $26.12 billion in July, up 28.18 per cent year over year. Non-petroleum, non-gems, and non-jewellery exports increased by 32.26 per cent. 

The intriguing trend in the month of July 2021

According to India Exim Bank's Chief General Manager, Research & Analysis, Prahalathan Iyer, an intriguing trend observed in the month of July 2021 is the increase in non-petroleum and non-gems and jewellery exports which increased by 32.3 per cent over the pre-covid level, much exceeding the growth of 28.2 per cent over the July 2020 level. This year, India exported commodities worth $130.82 billion, increasing 74% from the previous year. This accounts for over a third of their $400 billion yearly export goal. Imported goods totalled $172.55, up 94% from the previous year.

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