Merchandise export in Jan '22 grows 23.69 pc, trade deficit widens to USD 17.94 bn

New Delhi [India], February 2 : India's merchandise export in January 2022 grew to USD 34.06 billion registering a 23.69 per cent growth over the USD 27.54 billion of merchandise shipments in January 2021, pushed by robust performance by engineering, petroleum as well as gems and jewellery sectors.
India's previous highest ever yearly export record was also crossed in 10 months this year with figures touching USD 336 billion approximately, putting India well on track to achieve the FY 22 target of USD 400 billion of exports, according to Commerce Ministry data.
Merchandise import in January 2022 also shot up to USD 52.01 billion, an increase of 23.74 per cent over USD 42.03 billion in January 2021. Trade deficit, the difference between imports and exports, widened to USD 17.94 billion during the month as against USD 14.49 billion in January 2021 and stood at USD 160.38 billion during the 10 months period of FY 2021-22 (April-January).
On a cumulative basis, India's merchandise export in FY 2021-22 (April-January) rose by 46.53% to USD 335.44 billion over USD 228.9 billion in the corresponding period of 2020-21 while merchandise import was USD 495.83 billion in FY 2021-22 (April-January), an increase of 62.68% over USD 304.79 billion in 2020-21 (April-January).
While reaching USD 335.44 billion of exports will act as an impetus for crossing the USD 400 billion goal, the growth in imports is a matter of concern and needs analysis, points out A Sakthivel, President of the Federation of Indian Export Organisations. Though the Budget has announced a slew of measures to support exports, FIEO has sought extension of the interest equalisation scheme, allowing transfer of MEIS, increase in the validity of scrips to 24 months, extension of RoDTEP to EOUs, SEZ, advance authorisation and expansion of usages of RoDTEP and RoSCTL scrips.
A breakdown of the data shows the top 10 major commodity groups covering 78% of total exports in January 2022 as engineering goods, petroleum goods, gems and jewellery, organic and inorganic chemicals, drugs and pharmaceuticals, cotton yarn/fabs./madeups, handloom products etc, rmg of all textiles, electronic goods, plastic and linoleum and rice. "The year has started on a strong note for engineering goods exports whose exports jumped 24 per cent in January 2022 with the total shipment value exceeding US$ 9 billion," said Mahesh Desai, Chairman, Engineering Export Promotion Council India.
In other categories, the value of non-petroleum exports in January 2022 also grew at USD 30.33 billion, a 19.4 per cent increase over non-petroleum exports of USD 25.4 billion in January 2021. The cumulative value of non-petroleum exports in April-January of FY 2021-22 was USD 287.84 billion, an increase of 37.59% over USD 209.19 billion in the same period of FY 2020-21.
The value of non-petroleum and non-gems and jewellery exports in January 2022 was USD 27.09 billion, registering a positive growth of 20.1% over non-petroleum and non-gems and jewellery exports of USD 22.56 billion in January 2021. Cumulatively, value of non-petroleum and non-gems and jewellery exports in FY 2021-22 (April-January) was USD 255.69 billion, an increase of 34.95 per cent over non-petroleum and non-gems and jewellery exports of USD 189.47 billion in FY 2020-21 (April-January).