Have exports grown again in the month of October 2021?

The Ministry of Commerce normally puts out initial estimates at the start of the month. Based on the early estimates by the ministry, the merchandise exports for Oct-21 were up 42% on a yoy basis at $35.47 billion. On a sequential month on month basis, the exports were higher by 5%. At the forefront of the export surge were sectors like engineering goods, petroleum products, jewellery and organic as well as inorganic chemicals.

However, imports are still a worry as they continued to remain high at $55.37 billion. The trade deficit at $19.9 billion in October 2021 is lower than the figure of $22.59 billion in Sep-21. However, in absolute terms, this would means that India ends up the year with a trade deficit well in excess of $220 billion. Gold and oil imports were the key drivers of the import surge and that is not good news. India looks on target for $400 billion exports in FY22.