Nov merchandise exports up over 27%

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SME Times News Bureau | 14 Dec, 2021
India's November merchandise exports rose to $30.04 billion, higher by 27.16 per cent on a year-on-year basis, official data showed on Tuesday.

Exports during November 2020 stood at $23.62 billion.

The data by the Ministry of Commerce and Industry showed that in comparison to November 2019, last month's exports rose by 16.55 per cent.

"Non-petroleum and non-gems and jewellery exports in November 2021 were $23.68 billion, registering a positive growth of 22.26 per cent over non-petroleum and non-gems and jewellery exports of $19.37 billion in November 2020," it said.

In comparison to November 2019, non-petroleum and non-gems and jewellery exports in November 2021 registered a positive growth of 22.28 per cent.

Similarly, India's merchandise imports in October 2021 increased, rising by 56.58 per cent over last year to $52.94 billion from $33.81 billion.

"Non-petroleum, non-gems and jewellery imports were $31.82 billion in November 2021 with a positive growth of 40.64 per cent over non-petroleum, non-gems and jewellery imports of $22.63 billion in November 2020 and a positive growth of 41.82 per cent over non-petroleum, non-gems and jewellery imports of $22.44 billion in November 2019."

Consequently, the trade deficit widened by 124.77 per cent on a year-on-year basis to $22.91 billion in November 2021 from $10.19 billion in the like period of 2020. It had widened to $12.75 billion in November 2019.

ICRA Chief Economist Aditi Nayar said: "The merchandise trade deficit for November 2021 is not only twice as high as November 2020, but also significantly higher than the level in November 2019, which is a cause for concern regarding the implications for the size of the current account deficit in H2 FY2022.

"Additionally, the early data for December 2021 suggests that the trade deficit in this month will remain well above $20 billion. In this scenario, we expect the current account deficit to widen to $25-30 billion in Q3 FY2022 itself, exceeding the full year deficit seen in FY2020."

Meanwhile, EEPC India Chairman Mahesh Desai said: "The immediate need of the hour is containing the soaring prices of raw materials."

He pointed out that the increase in raw material prices has further put pressure on the margin leaving very little scope for making further investment by a large number of MSMEs which dominate the engineering goods sector.

The sector has been facing a double whammy of high logistics costs triggered by container shortage and almost uncontrollable prices of key raw inputs such as steel, copper and aluminium.

"Both the issues warrant urgent attention," Desai said.

FIEO President A. Sakthivel said that though the government has announced a slew of measures to support exports, the need of the hour is to soon announce extension of the interest equalisation scheme and allow transfer of MEIS.

He also cited other major issues, which requires the attention of the government, such as an option to support the sector in case of spread of new Omicron variant of Covid-19, augmenting the flow of liquidity, empty containers and establishing a regulatory authority to seek justification of imposition of various charges by the shipping lines.