InvestorQ : How has been the import and export scenario for the month of February 2021?
diksha shah made post

How has been the import and export scenario for the month of February 2021?

swati Bakhda answered.
1 year ago

On 15 March, the Ministry of Commerce announced the official trade data for the merchandise trade in the month of February. The trade deficit and the export and import provisions figures were already out on the 02nd of March itself. However, on Monday, the detailed product wise break up of exports and imports were also provided. Here is a quick look at the trade data for Feb-21.

For the month of Feb-21, India’s merchandise exports, which refers to the physical trade in goods, rose 0.67% to $27.93 billion. This has resulted in the trade deficit narrowing on a sequential basis to $12.62 billion for the month of February from above $15 billion in the month of Dec-20 and more than $14.5 billion in Jan-21. On a yoy basis, even the merchandise imports were up 6.96% at a level of $40.54 billion.

For the 11-month period from Apr-20 to Feb-21, the total cumulative year-to-date exports were lower by 12.23% at $256.18 billion. On the other hand, the merchandise imports for the same 11-month period were lower by 23.11% at $340.80 billion. One reason for this lower import bill on a yoy basis is that the average price of oil is much lower than the pre-pandemic period. That has created this fall but imports are constant in last 3 months.

The export growth was triggered by specific segments like cereals, oil meals, iron ore, rice, carpets, spices and pharmaceuticals, among others. However, exports of products like oilseeds, leather, petroleum products and cashew saw some contraction on a yoy basis. The total trade value measured as a sum of imports and exports has been steady over the last 3 months at around $69 billion. That is where India needs to catch up with China.