NEW DELHI: Indicating a rebound in economic activity, imports increased for the first time since February, increasing 7.6% to $ 42.6 billion in December, while exports were 0.8% lower to $ 26.9 billion due to lower shipments of oil products to UAE and parts of Europe. As a result, the trade deficit widened to $ 15.7 billion, the highest since January 2020, according to preliminary figures released by the commerce department on Saturday.
Drugs and pharmaceuticals, chemicals, electronics, and iron ore are among the sectors that posted double-digit export growth, with falling oil prices leading to a sharp 40% drop in the value of gasoline and diesel shipped out of the country to $ 2.2 billion. in December. Although countries like Singapore have increased their fuel purchases from India, large buyers like the United Arab Emirates have reduced imports by almost 50%.
Big buyers like the United Arab Emirates have cut oil imports by nearly 50%, reducing the country’s overall gasoline and diesel exports. At the same time, among the main export items, there were nascent signs of recovery in the case of gems and jewelry (6.7%) and engineering goods (0.1%), although clothing items languished, falling by 15 % in December as much of the Globe continued to work from home. Figures indicated that non-oil exports had experienced 5.3% to $ 24.7 billion.
Exporters looked positive, especially with Covid-19 vaccination starting in many parts of the world, including the US and the UK. “The New Year has brought a ray of hope and optimism for all of the worst of Covid-19 and vaccines are expected to return life and the economy to the growth trajectory with a V-shaped recovery in world trade. The arrival of vaccines has also helped boost business confidence for the sector as a whole, which can be seen in the positive figures for the coming months, “said SK Saraf, President of the Federation of Export Organizations of India, a pressure group.
At the same time, many exporters suggested that it is necessary to keep an eye on the figures in the coming months. “While the domestic economy is showing certain signs of recovery, there is still a difficult course for exports in the global market. This despite the deployment of the vaccine in various parts of the world,” said EEPC India President Mahesh Desai .
.
