First time in 10 months, imports in positive zone; exports inch up


NEW DELHI, jan 16: Merchandise exports inched up in December, for a second time since February 2020, while imports advanced for the first time in 10 months, suggesting a gradual return towards normalcy.
The quick estimate released by the Commerce Ministry on Friday shows exports rose 0.1 per cent on year to $27.15 billion in December, better than a 0.8 per cent contraction announced earlier.
Imports rose at a much faster pace of 7.6 per cent last December to $42.59 billion, inflating trade deficit to a 25-month high of $15.44 billion.
The rise in imports reflects a nascent revival of domestic demand, following the Covid-induced compression since March last year, as businesses go through a “reset” phase, taking advantage of the lifting of lockdown curbs.
However, as pointed out by analysts, some amount of pent-up demand for raw materials may also have contributed to the rise in imports, although it’s still an encouraging sign.
If inbound shipments continue to rise, import-sensitive exports, too, will get a boost but it will also mark a return to the usual high trade deficit trend.
The outbound shipment of core products (goods excluding petroleum and gems & jewellery), which reflects the economy’s competitiveness, grew 5.5 per cent in December, against a 0.4 per cent fall in the previous month. Similarly, core imports rose 8 per cent last month, compared with a 1.7 per cent fall in November. Overall, merchandise exports is still down by 15.7 per cent up to December this fiscal, while imports shrunk by 29 per cent.

Share This Story

Comment On This Story


Photo Gallery

BSE Sensex
NSE Nifty