Highest Exports Rate in January comparing to last 22 months: Commerce Ministry

According to the data provided by Commerce Ministry on Monday, in January, India’s exports growth rose 6.2% from last year, the highest rate since March 2019; this figure is 0.1% higher than December. It also hits the ministry’s preliminary estimate of a 5.4% increase in exports for January, gesturing a growing recovery post disruption.

The same way, imports also recorded a second successive month of growth (2% YoY) in January, but the trend of rise slowed from 7.6% in December 2020. Trade deficit narrowed to $14.54 billion in January from $15.44 billion in the previous month.

The same way, imports recorded a second successive month of growth (2% year-on-year) in January but the pace of rise slowed from 7.6% in December 2020. Trade deficit narrowed to $14.54 billion in January from $15.44 billion in the previous month.

The data indicated that exports rose to $27.45 billion in January, comparing that of last year which was $25.85 billion. Imports increased to $41.99 billion last month from $41.15 billion a year earlier. Significantly, core exports (excluding petroleum and gem and jewellery), which reflects the competitiveness of the economy, grew an impressive 13.4% in January.

Correspondingly, non-oil and non-gold imports rose 7.5% last month. One third of the 30 key commodity registered growth. The data show the overall outbound shipments up to January this fiscal remained 13.6% lower than a year earlier, while imports dropped at almost double the pace of 25.9%.

Impacted by a Covid-19 lockdown that shuttered the supply side hard, exports have born an up and down going trajectory this fiscal. Having risen by 6% in September 2020, the first expansion since February 2020, outbound shipments faltered by 5.1% in October and 8.7% in November before it witnessed a marginal rise in December.

“Nevertheless, it’s an encouraging sign and can potentially sustain once business operations stabilise in the wake of the Unlock,” have said the analysts.

The items with a sharp rise in exports during January inslude cereals other than rice and wheat (344%), oil meals (258%), iron ore (109%), engineering goods (19%) electronics and drug and pharmaceuticals (16