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Exports up only 0.6% MoM, but imports grew 8.6% MoM in Jun’21

* Preliminary data from the Ministry of Commerce reveals that exports grew 0.6% MoM in Jun’21 v/s a growth of 5.4% MoM in May’21. Imports grew 8.6% MoM in Jun’21 as against a decline of 15.7% MoM in May’21. Therefore, the trade deficit in Jun’21 stood higher at USD9.4b v/s a deficit of USD6.3b in May’21.

* While exports in 1QFY22 stood at USD95.4b, imports amounted to USD126.1b, leading to a foreign trade deficit of USD30.8b, higher than USD9.2b reported in 1QFY21.

* Notably, total exports grew at a two-year CAGR of 13.9%, but imports rose by only a 1% in Jun’21.

* On a YoY basis, exports grew 47.3% and imports grew 96.3%, primarily on account of a very low base. Exports had declined 12% YoY and imports had fallen 48% YoY in Jun’20.

* The major non-oil/non-gems and jewelry exports that had posted a YoY growth in Jun’21 are iron ore (134.5%), organic and inorganic chemicals (62.4%), cotton yarn/fabrics/made-ups, handloom products, etc. (50.9%), engineering goods (41.7%), tobacco (13%), electronic goods (11.9%), drugs and pharmaceuticals (9.9%), et al.

* Items that posted growth within imports are: medicinal and pharmaceutical products (132.2% YoY); chemical material and products 56.5% YoY); organic and inorganic chemicals (30.1% YoY); non-ferrous metals (28.2% YoY); pearls, precious and semi-precious stones (19.5% YoY); machinery, electrical and non-electrical (2.6% YoY); and iron and steel (0.7% YoY).

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