Exports in perspective during the last one year

2021-03-03 17:21:00 Exim News

The country's exports which was continuing its rising trend in the aftermath of covid 19 pandemic, touching the peak in January 2021 has slipped marginally last month a according to figures provided by the commerce department

The projections are that the growth in exports may accelerate again in the coming months but would be driven by product specific growth than any meaningful recovery.

If one went by the export pattern during the last one year, it crashed between March and May 2020 due to the nationwide lock down imposed by the central government in the third week of March last year to battle the corona virus pandemic

Monthly outward shipments rose only during three months between June 2020 and Feburary 2021 when the lock down curbs was eased in phases in various parts of the country.

Exports plummeted 0.3 per cent year-on-year in February to 27.67 billion US dollars, against a 6.2 per cent rise in the previous month, showed the preliminary data released on March second, indicating a bumpy road to recovery.

What comes as partial relief is that imports rose 7 per cent on-year in February

What comes as partial relief is that imports rose 7 per cent on-year in February to 40.55 billion US dollars against 2 per cent in the previous months, suggesting a gradual return of domestic demand with the picking up of manufacturing activity that was battered by the pandemic. This may also augur well for import-sensitive exports segments, including gems and jewellery.

Trade deficit narrowed to $12.88 billion in February from $14.54 billion in the previous month, but it’s almost 27 per cent higher from a year earlier.

Importantly, growth in core exports (excluding petroleum and gems and jewellery) — which reflect the competitiveness of the economy — slowed to 5.8 per cent in February from 13.4 per cent in January.

The data reveals that the overall outbound shipments until January this fiscal remained 12.3 per cent lower than a year earlier, while imports dropped at almost double the pace of 23.1   per cent.

The products that witnessed impressive growth in exports in February included iron ore (168 per cent), rice (30 per cent) and drugs and pharmaceuticals (15 per cent).

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