India’s merchandise trade deficit hits $30.76 bn in Q1 as imports surge

Merchandise imports in June 2021 zoomed to $41.87 billion (Rs3,08,002.48 crore), showing an increase of a whopping 98.31 per cent in dollar terms and 92.63 per cent in rupee terms, even as exports stood at $32.50 billion, showing an increase of 48.34 per cent in dollar terms and a 44.09 per cent growth in rupee terms.

Exports increased at a slower pace of 48.34 per cent year-on-year to $32.50 billion in June 2021, against $21.91 billion in June 2020. In rupee terms, exports grew 44.09 per cent to Rs2,39,047.45 crore in June 2021, compared to Rs1,65,898.85 crore in June 2020. Exports in June 2021 also grew sequentially showing an increase of 29.85 per cent in dollar terms and 37.55 per cent in rupee terms.

The commodities/commodity groups which have recorded growth during June 2021 vis-à-vis June 2020 included other cereals (235.93 per cent), petroleum products (115.37 per cent), man-made yarn/fabrics/made-ups etc (81.72 per cent), gems and jewellery (80.53 per cent), meat, dairy and poultry products (61.81 per cent), cotton yarn/fabrics/made-ups, handloom products etc (56.88 per cent), handicrafts, excluding handmade carpet (55.1 per cent), plastic and linoleum (53.8 per cent), engineering goods (52.9 per cent), electronic goods (45.2 per cent), jute manufacturing, including floor covering (44.93 per cent), iron ore (43.82 per cent), carpet (39.49 per cent), cereal preparations and miscellaneous processed items (38.64 per cent), ceramic products and glassware (36.97 per cent), organic and inorganic chemicals (36.3 per cent), marine products (33.74 per cent), leather and leather products (32.72 per cent), oil meals (28.16 per cent), RMG of all textiles (24.67 per cent), mica, coal and other ores, minerals, including processed minerals (24.17 per cent), coffee (12.82 per cent), tobacco (9.15 per cent), rice (8.81 per cent), fruits and vegetables (8.26 per cent) and drugs and pharmaceuticals (0.02 per cent).

Commodities/commodity groups such as oilseeds (-32.75 per cent), cashew (-24.45 per cent), tea (-18.54 per cent) and spices (-11.31 per cent) recorded negative growth during June 2021 vis-à-vis June 2020. 

Cumulative value of exports for the period April-June 2021 stood at $95.39 billion (Rs7,03,545.37 crore) against $51.32 billion (Rs3,89,016.27 crore) during April-June 2020, showing a growth of 85.88 per cent in dollar terms and a growth of 80.85 per cent in rupee terms. As compared to April-June 2019, exports in April-June 2021 exhibited a growth of 17.90 per cent in dollar terms and 25.01 per cent in rupee terms.

Imports in June 2021 stood at $41.87 billion (Rs3,08,002.48 crore), showing an increase of 98.31 per cent in dollar terms and a 92.63 per cent in growth in rupee terms over imports worth $21.11 billion (Rs1,59,892.42 crore) in June 2020.  Cumulative value of imports for the period April-June 2021 stood at $126.15 billion (Rs9,30,961.10 crore), as against $60.44 billion (Rs4,58,395.18 crore) during the period April-June 2020, showing a growth of 108.72 per cent in dollar terms and a 103.09 per cent growth in rupee terms. Imports in April-June 2021 registered a negative growth of (-) 3.04 per cent in dollar terms and a growth of 2.88 per cent in rupee terms comparison with the April-June period in 2019.

India’s oil imports in June 2021 stood at $10.68 billion (Rs78,532.41 crore), showing an increase of 16.51 per cent in dollar terms and a 110.31 per cent growth in rupee terms, compared to $4.93 billion (Rs37,341.70 crore) in June 2020. Oil imports in April-June 2021 stood at $31.00 billion (Rs2,28,756.45 crore) showing a 137.02 per cent increase in dollar terms and a 130.46 per cent increase in rupee terms compared to oil imports valued at $13.08 billion (Rs99,259.42 crore) in the same period last year. 

Non-oil imports in June 2021 were estimated at $31.20 billion (Rs2,29,470.07 crore) which was 92.77 per cent higher in dollar terms and 87.24 per cent higher in rupee terms compared to such imports valued at $16.18 billion (Rs1,22,550.72 crore) in June 2020. Non-oil imports in April-June 2021 stood at $95.14 billion (Rs7,02,204.65 crore), which was 100.90 per cent higher in dollar terms and 95.53 per cent higher in rupee terms, compared to $47.36 billion (Rs3,59,135.76 crore) in April-June 2020.