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Exports rose 26%, imports up 57% in November

According to the data furnished by the Ministry of Commerce and Industry, last month’s exports rose by 15.93 per cent over November 2019. …reports Asian Lite News

India’s merchandise exports in November rose to $29.88 billion, higher by 26.49 per cent on a year-on-year basis, preliminary data showed on Wednesday.

Exports in November 2020 stood at $23.62 billion.

According to the data furnished by the Ministry of Commerce and Industry, last month’s exports rose by 15.93 per cent over November 2019.

“Value of non-petroleum exports in November 2021 was $26.06 billion, registering a positive growth of 18.1 per cent over non-petroleum exports of $22.06 billion in November 2020 and a positive growth of 18.69 per cent over non-petroleum exports of $21.95 billion in November 2019.”

The value of non-petroleum and non-gems and jewellery exports rose to $23.66 billion, registering a positive growth of 22.16 per cent over November 2020.

As per the data, India’s merchandise imports last month increased by 57.18 per cent to $53.15 billion over $33.81 billion in November 2020 and 37.96 per cent over $38.52 billion reported for the corresponding month of 2019.

“Value of non-petroleum imports was $38.47 billion in November 2021 with a positive growth of 39.9 per cent over non-petroleum imports of $27.5 billion in November 2020 and a positive growth of 40.12 per cent over non-petroleum imports of $27.45 billion in November 2019.”

“Value of non-oil, non-GJ (gold, silver & Precious metals) imports was $32.02 billion in November 2021 with a positive growth of 41.53 per cent over non-oil and non-GJ imports of $22.63 billion in November 2020 and a positive growth of 42.72 per cent over non-oil and non-GJ imports of $22.44 billion in November 2019.”

Consequently, India’s trade deficit last month widened by 128.30 per cent YoY to $23.27 billion from $10.19 billion while it increased by 82.48 per cent when compared to $12.75 billion reported for November 2019.

Meanwhile, India’s April-October budgetary fiscal deficit has reached 36.3 per cent of the FY22 target.

As per the data furnished by the Controller General of Accounts (CGA), the fiscal deficit — the difference between revenue and expenditure — for the April-October 2021-22 period stood at Rs 547,026 crore, or 36.3 per cent of the budget estimates (BE).

The FY22 deficit has been pegged at Rs 15.06 lakh crore.

Besides, the CGA data showed that the fiscal deficit during the corresponding months of the previous fiscal was 119.7 per cent of that year’s target.

The Central government’s total expenditure stood at Rs 1,826,725 crore (52.4 per cent of BE) while total receipts were Rs 1,279,699 crore (64.7 per cent of BE).

ICRA Chief Economist Aditi Nayar said: “We estimate the total expenditure to overshoot the FY2022 BE by Rs 1.3-1.5 trillion, based on the net outgo related to ‘First Supplementary Demand for Grants’, recent enhancement in food subsidy outgo towards the ‘PMGKAY’, increase in fertiliser subsidy for the rabi season, and the likely enhancement in the allocation for the ‘MGNREGA’ and the new export benefit ‘RoDTEP’ scheme.”

“If the proceeds of the BPCL disinvestment and LIC IPO are both not realised in FY2022, the GoI’s fiscal deficit may print at Rs 15.8-16 trillion (6.9-7 per cent of GDP), exceeding the BE of Rs. 15.1 trillion.”

India Ratings and Research’s Principal Economist Sunil Kumar Sinha said: “Fiscal deficit in first seven months declined to Rs 201.75 billion in FY22, 36.3 per cent of full year. This is the lowest in last four years in level terms and lowest in last 13 years as percentage of full year’s fiscal deficit. This is due to a combination of high growth in revenue receipts and low revenue expenditure growth.

“While, capex growth so far has been strong in FY22, in relation to budget target, Capex in first seven months has been 45.71 per cent. Corporate tax and custom collection have led revenue receipt growth. India Ratings expects fiscal deficit in FY22 to come in at 6.2 per cent of GDP, lower than the budgeted 6.8 per cent of GDP.”

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