Export Import Newsletter 07th December 2021

India’s growth in exports slowed down in November to 26.49% totalling $29.88 billion with items such as gems and jewellery and pharmaceuticals registering a decline. As the imports have grown by 8%, the trade deficit has more than doubled to $23.27 billion. Outward shipments of engineering goods, which accounted for 28.19% of total exports in November, jumped about 37% year-on-year to $8 billion. Exports of petroleum products soared 145.3% on an annual basis to $3.82 billion. On the imports front, the inbound shipments of ‘petroleum, crude and products’ surged 132.44% to $14.68 billion in November. Similarly, imports of ‘coal, coke and briquettes’ climbed 135.81% in November this year to $3.58 billion.

The commerce ministry has asked state-backed export councils and key industry bodies to work more closely with various government departments and overseas missions, and has suggested, through research and studies, “relevant areas for intervention”, as part of its broader effort to realise the lofty $400-billion export target for FY22. Having successfully weathered the damage caused by two Covid waves, Indian exporters face fresh uncertainties now from the emergence of a new Covid variant that can further disrupt the already-burdened global supply chains.

We have discussed some of the latest updates in Indian exports below:

India’s merchandise exports rise 26% in Nov; trade deficit at record $23 bn (Source)

India’s merchandise exports in November rose by 26.49% to $29.88 billion on account of healthy growth in sectors such as engineering, petroleum, chemicals and marine products, according to provisional data released by the government. The exports stood at $23.62 billion in November 2020. Imports in November were at $53.15 billion, an increase of 57.18% over $33.81 billion in the same month of 2020, leaving a record merchandise trade deficit of $23.27 billion in November compared with $10.19 billion a year ago.

Imports in April-November 2021 grew by 75.39% to $384.44 billion. Trade deficit stood at $121.98 billion during the eight-month period of this fiscal. As per the data, the trade deficit in November more than doubled to $23.27 billion as gold imports grew by about 8% to $4.22 billion. The gap between imports and exports totalled $10.19 billion during November 2020.

Exports decline to the lowest in nine months in November (Source)

India’s merchandise exports fell to the lowest level in nine months in November as supply bottlenecks and rising covid-19 cases in Europe cast a shadow on India’s outbound shipments. Preliminary data released by the commerce ministry showed merchandise exports hit $30 billion, while merchandise imports stood at $53 billion, leading to a trade deficit of $23 billion in November. In October, exports had clocked a record high of $35.47 billion. 

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Rising demand for convenience food boosts value addition in Indian seafood exports (Source)

Indian seafood exporters are churning out more value-added products to cater to the rising demand for convenience foods in overseas markets, particularly the US, after the outbreak of Covid-19. The retail market is booming as a large section of people are still hesitant to go to restaurants and catering is yet to regain normalcy. Since home consumption has come to stay, people are buying more ready-to-eat foods.

Value addition in the total annual seafood export from India was stagnant at around 6-7% till Covid-19 hit the world. In the last couple of years, it has risen to around 10%, according to Marine Product Export Development Authority (MPEDA) sources. India exported marine products worth $5.96 billion in FY21 and the country is hoping to touch the $7 billion mark in the current year.

US dropping proposed 25% additional tariff on Indian exports after DST deal (Source)

The US is dropping the proposed 25% additional duties on more than 25 Indian exports ranging from shrimps and basmati rice to gold jewellery and furniture following a settlement of the dispute over the Digital Services Tax (DST) imposed by New Delhi on some giant American companies, according to the US Trade Representative’s (USTR) Office.

The US Treasury Department said on Wednesday that an agreement to settle the dispute was reached with India on the basis of the international agreement on taxing multinationals that was reached in July and finalised last month by 137 countries, paving the way for the USTR to drop the additional import duties.

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