India's exports, power consumption robust in first week of May

Amid a not-so-encouraging forecast for India’s economy in the April-June quarter, two data points — the country’s power consumption and exports in the first seven days of May — have raised some hope in the time of the pandemic.

While exports grew by 80 per cent to $7.04 billion during the first week of this month, power consumption went up by 25% to 26.24 billion units (BU) over the same period last year, showing consistent recovery in industrial and commercial demand of electricity.

Exports during the first week of May in 2020 stood at $3.91 billion. They were at $6.48 billion in the same period in 2019, data showed. Last month, exports had risen three-fold to $30.21 billion as against $10.17 billion in April, 2020.

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Data showed that imports, too, rose by over 80 per cent to $8.86 billion during the first seven days of this month, as against $4.91 billion in the same period last year.

However, the growth in exports and imports year-on-year is due to the base effect. Last year, economic activities had been badly impacted in April and May due to a pan-India shutdown.

Premier exporters body FIEO expressed hope that exports will continue to be good in the month as the order books were robust. India’s gems and jewellery and petroleum products were among the items that have returned to the growth trajectory. Reducing customs duty on gold import has helped the sector look up again, said experts.

Electricity consumption, a proxy for industrial wellbeing, grew 26.24 BU in May as against 21.05 BU last year. The power consumption in the entire month of May last year was 102.08 BU.