The country's goods exports rose for the sixth consecutive month in February when it recorded a year-on-year growth of $17.5% to touch $24.5 billion, thanks to a huge jump in shipments including that of engineering goods and petroleum products, according to data released by the commerce ministry on Wednesday. Meanwhile, imports went up 21.76% to $33.4 billion during the month owing to surge in gold and oil imports. This led to trade deficit for the month widening to $8.9 billion in February from $6.5 billion in February 2016, but narrowing from $9.84 billion in January 2017.
In February, engineering goods shipments shot up 47.33% to $6.6 billion, while petroleum products exports jumped 27.6% to $2.46 billion. Readymade garments rose 5% to $1.6 billion, while chemicals increased 11.3% to $1.3 billion and gems & jewellery shipments went up 2.3% to $4 billion. Drugs & pharmaceuticals exports, however, shrunk 4.1% to $1.2 billion. Non-petroleum and non-gems & jewellery exports in February went up 20.1% to $18 billion.
Gold imports in February surged 147.6% to $3.48 billion, and pearls & precious stones imports increased 9% to $2.2 billion. Oil imports jumped 60% to $7.68 billion. Incidentally, the global Brent prices ($/bbl) and Gold ($/troy oz) have increased by 67.14% and 2.89% respectively in February 2017 vis-à-vis February 2016 as per World Bank commodity price data. Non-oil imports during February were up 13.65% to $25.7 billion. Coal imports went up 33% to $1.6 billion, while chemicals imports rose 22.5% to $1.4 billion. Electronic goods imports rose 12.2% to $3.4 billion. Machinery imports contracted 29% to $2.3 billion, while transport equipment shrunk 15.7% to $1.4 billion.
Exports during April-February 2016-17 went up marginally by 2.5% to $245.4 billion. Non-petroleum and non-gems & jewellery exports during April-February 2016-17 also rose by 2.2% to $ 179.1 billion. Imports during April-February 2016-17 shrunk 3.7% to $340.7 billion. Oil imports during April-February, 2016-17 contracted 1.8% to $76.7 billion, while non-oil imports during the same period shrunk 4.22% to $264 billion.
S.C. Ralhan, president of the country's apex body for exporters, Federation of Indian Export Organisations, said continuous positive growth in exports for the last six months is thanks to the commitment of the exporting community to deliver even during such challenging times of global trade slowdown -- that has affected exports of many countries including China. He pointed out that 23 out of 30 major export items recorded positive growth in February, adding that going by the current trend, India's goods exports for 2016-17 could touch around $270 billion. He, however, said due to the prevailing uncertainty in global trade, exporters should further diversify the product basket with more focus on high-tech items where India’s share in global trade is low.
India’s goods exports had shrunk from December 2014 to May 2016, but then recorded positive growth for the first time in 18 months with a 1.97% growth in June. However, it soon returned to negative growth territory in July and August before recovering to record positive growth from September 2016 onwards. In other parts of the world, growth in exports was positive for the US (5.61%), European Union (1.68%) and Japan (10.87%) but China's shipments registered negative growth of (-6.20%) for December 2016 over the same period of previous year as per the latest World Trade Organisation (WTO) statistics. World trade in 2016 will expand by just 1.7%, as per the WTO. With expected global GDP growth of 2.2% in 2016, the year would mark the slowest pace of trade and output growth since the financial crisis of 2009, the WTO had said, adding that in 2017, global trade is expected to grow between 1.8% and 3.1%. (ENDS)
