Marginal fall in Feb exports, gold imports surge

A decline in the exports of gems and jewelry, petroleum merchandise and engineering items made India’s general exports decline 0.25% in February after rising for 2 consecutive months.

However, gold imports surged virtually 124% on-year, resulting in a 7% rise in general imports and widening the nation’s trade deficit to $12.88 billion from $10.16 billion in the 12 months in the past interval, preliminary knowledge launched by the commerce and business ministry on Tuesday confirmed.

India’s outbound shipments had been $27.67 billion final month whereas imports had been $40.55 billion.

India’s oil imports declined 16.63% to $8.99 billion and fell 40.18% to $72.08 billion in the course of the 11-month interval of the present fiscal.

Besides gold, digital items, chemical compounds, iron and metal, ores, pharmaceutical merchandise and wooden merchandise additionally led to an increase in general imports.

“Following the Budget, in February 2021, gold imports surged to the highest level since November 2014,” stated Aditi Nayar, principal economist at ICRA.

Exports in the course of the April-February interval 2020-21 interval had been $255.92 billion as in opposition to $291.87 billion in the 12 months in the past interval. Growth in exports was seen in merchandise corresponding to rice, medication, carpets, handicraft, ceramic, plastics and chemical compounds whereas a decline was witnessed in readymade clothes and marine merchandise in February. The Federation of Indian Export Organisations expects India’s full 12 months exports to clock round $290 billion in 2020-21, decrease than $314.3 billion in FY20.

Non-oil-non-gold, silver and treasured metals imports, an indicator of the power of home demand, rose 7.4% in February.

(The one-stop vacation spot for MSME, ET RISE offers information, views and evaluation round GST, Exports, Funding, Policy and small enterprise administration.)

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