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What is the News?
The Ministry of Commerce and Industry has released the preliminary data on the Merchandise exports in May 2021.
What are the key findings from the data?
Merchandise Exports:
- India’s merchandise exports are estimated at around $32.21 billion in May 2021. This is 67.39% higher when compared to May 2020.
- The large rise can be attributed to a weak base due to the disruption caused by a nationwide lockdown in 2020.
- However, comparisons with May 2019 also showed exports have grown by 7.9%, indicating a real recovery in the export sector.
- The growth in exports was primarily due to a rise in demand for engineering goods, petroleum products, gems and jewelry, pharmaceuticals, and iron ore.
Merchandise Imports:
- India’s merchandise imports are estimated at $38.53 billion in May 2021. This is 68.6% higher when compared with May 2020.
- However, the imports were 17.5% lower when compared to May 2019.
Trade Deficit:
- India’s trade deficit has decreased to an eight-month low. It is at $6.3 billion in May 2021 when compared to $15.1 billion in April.
- This is due to State-level restrictions that widened over May and curbed domestic demand for both gold and oil.
Way Forward:
- The government needs to soon notify the RoDTEP [Remission of Duties and Taxes on Export Products] rates to remove uncertainty and help expedite new contracts with foreign buyers.
Source: The Hindu
