According to official data released on Monday, November 15, 2021, India’s merchandise export rose 43 per cent to $35.65 billion in October, as external demand continued to remain robust.
Preliminary data released by the Ministry of Commerce and Industry showed that the growth was driven by higher demand for commodities, mainly engineering goods, petroleum products, gems and jewellery, as well as organic and inorganic chemicals, among other commodities.
Top export sectors
Export sectors that registered positive growth during October included petroleum, engineering goods, gems and jewellery, coffee, cotton yarn/fab/made-ups, chemicals plastics and linoleum, and marine products, the data showed.
Compared to the pre-Covid levels of October 2019, growth in the value of goods exported was up nearly 36 per cent. Exports have been on an upward trajectory for almost a year now, with the value of exports hovering around $30 billion over the past eight months, amid a gradual recovery in key western markets.
India’s merchandise export stood at $233.54 billion in April-October
On a cumulative basis, India’s merchandise export stood at $233.54 billion in April-October, up 55.23 per cent and 26 per cent over the same period in 2019. This translates into India reaching 58 per cent of its export target of $400 billion for the current fiscal year.
Trade deficit fell to $19.73 billion in October
The trade deficit narrowed to $19.73 billion in October, from a record high of $22.59 billion in September. The widening of the deficit was due to a spurt in imports of goods ahead of the festive season and a hardening in commodity prices.
Non-petroleum, non-gems & jewellery exports stood at $26.09 billion
Non-petroleum and non-gems and jewellery export stood at $26.09 billion in October, up 27.7 per cent year-on-year. They saw a jump of 37 per cent as compared to October 2019.
Strong world demand in eight consumer goods categories – carpets, handicrafts, spices, marine products, leather goods, meat (including poultry and dairy products), plastics and electronic goods – is expected to grow further in the future.
These eight items account for 12 per cent of outward shipments. It is expected that world demand for these eight commodities will increase in the coming months as economic growth and income levels recover from the low levels of the pandemic.