Exports up 25%, trade deficit widens to $20.88 bn
NEW DELHI: India’s exports rose 25.1% to $34.57 billion in February because of healthy growth in sectors such as engineering, petroleum and chemicals, even as the trade deficit widened to $20.88 billion, according to data released by the commerce ministry on Monday.
Imports during the month also jumped 36% to $55.45 billion, with inbound shipments of petroleum and crude oil surging 69% to $15.28 billion.
Trade deficit, the difference between imports and exports, stood at $13.12 billion in February 2021.
“Merchandise exports for the period April-February 2021-22 was $374.81 billion as against $256.55 billion during the period April-February 2020-21, registering a positive growth of 46.09%,” the ministry said.
Imports during the 11-month period rose 59.33% to $550.56 billion. Trade deficit during this period widened to $175.75 billion as against $88.99 billion during April-February 2020-21.
Gold imports in February dipped by 9.65% to $4.8 billion. Imports of electronic goods rose about 29.53% to $6.27 billion.
Exports of engineering goods, petroleum and chemicals in February increased by 32%, 88.14%, and 25.38% to $9.32 billion, $4.64 billion and $2.4 billion, respectively. Pharmaceutical exports, however, fell by 1.78% to $1.96 billion in February.
Meanwhile, Union minister Nitin Gadkari said recently that in the wake of the ongoing conflict in Ukraine, Indian exporters are sitting on large orders amid sharp increase in logistics costs. The minister said exporters are concerned about the availability of containers and port-related issues.
“Because of these complications, the industry is not being able to take advantage of such large exporter orders,” Gadkari, who is the Union minister for road transport and highways, said at a virtual session organised by the Confederation of Indian Industry, eastern region.
The country has to reduce its dependence on crude oil, which is the need of the hour for the industry, and opt for alternative fuel like green hydrogen, Gadkari also said.
Worldwide shipping costs have increased 30% year-onyear, according to Hellenic Shipping News.
Meanwhile, Indian mills signed contracts to export 550,000 tonnes of sugar, as surging global prices and a weak rupee made overseas sales lucrative, four dealers told Reuters.
MERCHANDISE EXPORTS FOR APRIL-FEB FY22 WERE AT $374.81 BN AGAINST 256.65 BN IN FY21
Reuters
NEW DELHI: The National Stock Exchange (NSE) plans to set up a new domestic spot gold exchange that would bring more efficiency and transparency to bullion pricing.
NSE will create the exchange together with the India Bullion and Jewellers Association, which represents industry members in the world’s second largest consumer of the precious metal.
The new bourse will be overseen by the Securities and Exchange Board of India (Sebi), the country’s market regulator,
NSE said.
“This exchange shall bring in efficiency as well as transparency in the price discovery of bullion,” NSE managing director and chief executive officer Vikram Limaye said.
The exchange will help jewellers, retailers, refiners and banks trade over a regulated platform,
However, Limaye did not specify when the exchange will start operating.
China, the top gold consumer, runs a similar bourse, where all domestic production and imported gold has to be bought and sold.
India’s central bank at present allows some domestic banks to import gold, which is then purchased by bullion dealers and then sold to jewellers before going to the retail customers.
India’s gold demand in 2021 was 797.3 tonnes, which is worth around $46.1 billion, according to the World Gold Council.
NSE WILL CREATE THE EXCHANGE TOGETHER WITH THE INDIA BULLION AND JEWELLERS ASSOCIATION