India’s goods exports in May 2021 stood at $32.27 billion, up 69.3% with respect to May 2020. Of course, given that the country spent much of May 2020 under a lockdown, this is not a fair comparison. Nevertheless, exports were up 8.1% in comparison to May 2019, when they had stood at $29.85 billion. The other commodities which have recorded positive growth during May include handicrafts, leather, meat, dairy and poultry products, handlooms, RMG (ready-made garments) of all textiles, carpet, cashew, marine products, iron ore, plastic and chemicals. Items which have registered negative growth are fruits and vegetables, oil seeds, pharmaceuticals, tea and spices.
Agricultural exports have also risen, where India has been noting highest growths in Indonesia, Bangladesh and Nepal. Indian exporters have also made plans to share ownership with Pakistan of the Basmati rice to reach the EU market which should boost export numbers even further.
We bring you, some of the important updates in Indian trade below:
India’s exports jump to $32.27bn in May; Trade deficit widens to $6.28bn: Govt (Source)
India’s trade deficit in goods widened to $6.28 billion in May from $3.15 billion during the same period a year earlier, revised trade data released by the Union Ministry of Commerce & Industry on Tuesday showed.
Merchandise exports rose 69.35% in May from a year earlier to $32.27 billion, driven by healthy growth in sectors such as engineering, petroleum products and gems and jewellery, while imports were up 73.64% to $38.55 billion.
Imports too grew in May this year by 73.64% to $38.55 billion, from $222 billion in the same month a year ago — leaving a trade deficit for the month being reviewed at $6.28 billion.
India’s agriculture exports jump 17.34% to $41.25 billion in FY21 (Source)
After remaining stagnant for the last three years, the export of agriculture and allied products during 2020-21 grew 17.34% to $41.25 billion. In 2017-18 and 2018-19, they hovered around $38 billion, thereafter declining to $35.16 billion in 2019-20. In the first two months of the current fiscal year, there was a 43% jump
India is seeing growth in the export of cereals, non-basmati rice, wheat, millets, maize, and other coarse grains. The largest markets for India’s agricultural products are the US, China, Bangladesh, the UAE, Vietnam, Saudi Arabia, Indonesia, Nepal, Iran, and Malaysia.
An official statement said that the highest growth has been recorded in Indonesia (102.42%), Bangladesh (95.93%), and Nepal (50.49%).
Covid Impact: Gems, Jewellery, exports fall 5% in May (Source)
India’s gems and jewellery exports in May 2021 declined by 5% to ₹21,188 crore ($2.89 billion) compared to the same month in pre-pandemic 2019, due to the disruptions caused by the second Covid wave across the country, according to the Gem and Jewellery Export Promotion Council (GJEPC).
In 2019, the overall gem and jewellery exports in May stood at ₹22,388 crore ($3.20 billion). India’s gem and jewellery exports in May 2021 slipped into negative territory due to the severe disruption in manufacturing activity caused by the outbreak of the second Covid wave across the country, the GJEPC said in a statement
The mix of partial and complete lockdowns in different states led to limitations on workforce capacities and related manufacturing activities. However, gems and jewellery exports grew by 4% during April and May 2021 to ₹46,414.38 crore ($6.31 billion) compared to the same months during the pre-pandemic year in 2019.
Pakistani, Indian exporters agree to share Basmati rice ownership (Source)
Although long-time rivals India and Pakistan are already locked in a slew of land and sea disputes, exporters from both sides have agreed to share ownership of the region’s prized Basmati rice, the best solution to the issue to reach the EU markets.
India has filed a claim in the EU seeking a geographical indication tag for Basmati rice, a move opposed by neighbouring Pakistan, which has filed its own request for protected geographical indication.
A geographical indication is a label applied to products with a specific geographical origin that has qualities or reputation essentially based on the natural and human factors of their origin.
Pakistani and Indian exporters, however, believe that joint ownership of Basmati is the only viable solution to the dispute.
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