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Exports up 5.2% MoM in May’21 after declining 11.1% in Apr’21

* Preliminary data from the Ministry of Commerce reveals exports grew 67.4% YoY to USD32.2b in May’21 (on the back of a low base of -35.5% YoY in May’20). Interestingly, exports grew 5.2% sequentially in May’21, after declining 11.1% in Apr’21. On the other hand, imports grew 68.6% YoY to USD38.5b in May’21 v/s -51% YoY in May’20. On a MoM basis, however, imports shrank 15.7% in May’21, the fastest MoM decline in 13 months (Exhibits 1, 2).

* Consequently, India’s foreign trade came in at USD6.3b in May’21, ~60% higher than the USD3.6b deficit seen in May’20 (Exhibit 3). On a sequential basis, the trade deficit narrowed to less than half from USD15.1b in Apr’21.

* Cumulatively (Apr–May’21), the trade deficit stood at USD21.4b, more than double the deficit over Apr–May’20.

* The major non-oil / non-gems and jewelry exports that posted growth comprise engineering goods (16.1% YoY); drugs and pharmaceuticals (10.9% YoY); organic and inorganic chemicals (6.3% YoY); electronic goods (5.1% YoY); cotton yarn/fabrics/made-ups and handloom products, etc. (24.9% YoY); and jute mfg. including floor covering (21% YoY).

* Additionally, items that saw decline in exports in May’21 (over May’19) were leather and leather manufactures (-36.5% YoY); tea (-29.4% YoY); RMG of all textiles (-27.6% YoY); gems and jewelry (-13.4%); and tobacco (-0.78%).

* The items that posted growth in imports in May’21 (over May’19) comprise chemical materials (45.9% YoY); pearls, precious, and semi-precious stones (33.8% YoY); medicinal/pharma products (29.4% YoY); and organic & inorganic chemicals (6.88%), etc.

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