India observed a 23 percent higher export in the FY21 than the pre-covid FY-20 April-August.
August added to a strong export performance as this Fiscal saw a rise by about 2/3rds to $163.7 billion. The merchandise exports hit $33.14 billion in August, observed to have increased by 45.2 percent year on year and backed by a strong international demand for the goods.
According to the data by the commerce ministry, the government is targeting merchandise exports of $400 billion for the upcoming FY22.
Imports also saw a rise, up by 51.1 percent year on year to $47 billion in the last month. This raised the trade deficit for this Fiscal to $55.9 billion which is a steady increase from the $22.7 billion last year.
Collectively, the export surge is observed to be about 66.92 percent to $163 billion in the April-August FY22, compared to the same period last year. FY21 was a difficult financial year for the industry but the exports saw a rise in December. February observed a marginal growth of 0.67 percent before the low base effect, the tendency of a small change from a low initial amount to be translated into a large percentage change, kicked in.
Since then, if calculated annually year on year, exports were set to rise to 48.3 percent in June, 69.7 percent in May and a staggering 193.63 percent in April.
The key reasons for the surge are credited to the sharp rise in demand from the west, the middle east and China for engineering goods, petroleum products, gems and jewellery and textiles and garments.
Gold is observed to be driving the growth in imports and trade deficit this financial year. August saw the highest rise at 82.2 percent that crosses the $6.7 billion mark. However the largest part of the import bill is petroleum and crude oil with imports nearly double to $11.63 billion.