LOW-BASE EFFECT PUSHES UP APRIL EXPORTS BY 197%

India’s merchandise exports nearly trebled in April to $30.21 billion, an increase of 197.03 per cent year-on-year, mainly due to the lowbase effect as Covid-induced nationwide lockdown a year ago had halted economic activities. Exports grew 16.03 per cent from $26.04 billion in April 2019, showing the low base was also supported by strong demand in the first month of this fiscal year.

India’s merchandise exports nearly trebled in April to $30.21 billion, an increase of 197.03 per cent year-onyear (YOY), mainly due to the lowbase effect as Covid-induced nationwide lockdown a year ago had halted economic activities.

Exports, however, grew 16.03 per cent from $26.04 billion in April 2019, indicating a low base was also supported by strong demand in the first month of the current fiscal year.

An uptick in the outbound shipments in April was driven by demand for petroleum products, engineering and gems and jewellery products. The latest data also indicates that an unprecedented surge in Covid-19 cases, as well as localised lockdowns, did not affect the demand for goods. On a sequential basis, exports shrunk 12.3 per cent from $34.45 billion in March.

The preliminary data released by the ministry of commerce and industry on Sunday showed that India’s merchandise imports in April were $45.45 billion, up 165.99 per cent YOY. Inbound shipment grew 7.22 per cent from April 2019 at $42.39 billion. This resulted in a trade deficit of $15.24 billion, up 120.34 per cent YOY. The deficit was $16.30 billion in April 2019.

The rise in inbound shipments was mainly on the back of higher import of gold, petroleum products, and electronic goods.

“Impressive growth reiterates our assessment that the order booking position of our exporters is extremely good and with gradual improvement of the situation in the country will push exports growth further,” said Sharad Kumar Saraf, president of Federation of Indian Export Organisations. He said over 15 per cent growth on the base of April 2019 is a better indicator and reflects a positive double-digit trend.

In April, the value of non-petroleum exports was $26.85 billion, up 200.62 per cent YOY and 19.44 per cent as compared to April 2019. The value of non-petroleum and nongems and jewellery exports was $23.51 billion, up 164.28 per cent and 19.89 per cent from in April 2019.

“The surge in Covid-19 cases has posed risks to the growth but we remain hopeful of continued recovery. The WTO has also revised its projection upward and expects the global trade volume to increase by 8 per cent in 2021,” Engineering and Export Promotion Council of India Chairman Mahesh Desai said.