Exports jump to $30.21 billion in April, trade deficit widens to $15.24 billion

Imports rose by over three-folds to $45.45 billion in April

Showing signs of a robust recovery, India logged in the new financial year with a 197% year-on-year rise in exports in April to $30.21 billion. This was backed by growth in sectors including engineering, gems and jewellery, and petroleum products but imports too increased widening the trade gap to 15.24 billion.

The government data showed gold imports surged to $6.12 billion in April as against $2.83 million in April 2020 contributing the most to inward shipment.

Imports too rose by over three-folds to $45.45 billion last month as against $7.09 billion in April 2020. Trade deficit widened to $15.24 billion.

Major export commodities which have recorded positive growth in April include gems and jewellery, jute, pharmaceuticals, carpet, handicrafts, leather, electronic goods, oil meals, cashew, engineering, petroleum products, marine products and chemicals.

Exports of engineering, gems and jewellery, and petroleum products rose multifold to $5.55 billion, $3.3 billion, and $2.12 billion, respectively in April.

Engineering goods exports zoomed 234.63% in April 2021 indicating that recovery in outbound trade is well on track and outlook remains positive. While sharp jump in shipments is primarily on account of low-base effect, it has also been supported by robust demand, said EEPC India Chairman Mahesh Desai.

"The recent surge in Covid-19 cases has posed risks to the growth but we remain hopeful of continued recovery during the year. The WTO has also revised its projection upward and expects the global trade volume to increase by 8% in 2021," he said.

Premier exporters’ body FIEO President Sharad Kumar Saraf said that such a growth performance in exports during the first month of the new financial year augurs well for the sector as it will help in paving a new growth path for the sector as a whole during the fiscal.

He, however, said that rising imports and trade deficit were a matter of concern and needed to be looked into.