Driven by a growth in gems and jewellery, petroleum products, chemicals and leather, and a favourable base effect, India's merchandise exports rose 48.3% on year-on-year basis in June. The pace of growth though slowed from 69.35% in May and 195.7% in April.
Data showed India’s goods exports rose to $32.5 billion last month amid localised restrictions to control the spread of the Covid-19 pandemic, taking the first quarter exports to $95.39 billion, up 85.88% over the corresponding period of FY21.
26 of the 30 major export sectors witnessed growth last month including electronics, engineering goods and labour-intensive ones such as gems & jewellery and textiles.
“The highest-ever quarterly growth in exports by more than 85% with $95 billion over FY21 and by about 18% over FY20 not only shows the resilience of the exports sector but also the strength of the Indian economy,” said A Sakthivel, president, Federation of Indian Export Organisations.
Imports in June rose 98.31% to $41.87 billion, leaving a trade deficit of $9.37 billion against a trade surplus of $0.79 billion in the same month last year. Gold imports grew 60% on-year in June compared to a whopping 790% in May.
Trade deficit during the quarter was $30.75 billion against $9.12 billion during April-June 2020.
ICRA chief economist Aditi Nayar said surging exports and relatively subdued gold imports in May and June dampened the aggregate trade deficit to a three-quarter low in the first quarter of FY22.