India had exported a record $35.4 billion worth of goods in July, driven by rapid economic recovery in key western markets. Merchandise imports had surged to $46.4 billion, the second-highest in history, expanding India’s trade deficit to $11 billion

India’s merchandise exports eased to $7.1 billion in the week ended 14 August from $7.4 billion in the previous week, as per preliminary data released by the commerce ministry.

While engineering exports and shipment of gems and jewellery helped, export recovery slowed down due to a fall in export of petroleum products, iron ore, and leather items.

Merchandise imports increased to $10.8 billion from $10.5 billion, leading to a trade deficit of $3.7 billion during the week, the data showed. Imports of gold, crude oil and precious stones rose during the week while silver and transport equipment imports declined.

India had exported a record $35.4 billion worth of goods in July, driven by rapid economic recovery in key western markets, revised data from the commerce ministry showed on Friday. Merchandise imports had surged to $46.4 billion, the second-highest in history, expanding India’s trade deficit to $11 billion.The government has set a merchandise exports target of $400 billion for FY22 and $1 trillion in the next five years. With services exports target at $500 billion, India hopes to be a significant player in world trade in the next five years, with $1.5 trillion in combined exports.

The International Monetary Fund (IMF) last month projected global trade to grow at 9.7% in 2021 after contracting 8.3% in 2020. “The merchandise trade recovery is set to broaden after being initially concentrated in pandemic-related purchases, consumer durables, and medical equipment. Services trade is expected to recover more slowly, consistent with subdued cross-border travel until the virus transmission declines to low levels,” it said.

According to estimates by the World Trade Organization, the volume of world merchandise trade is expected to increase 8% in 2021, continuing its rebound from the pandemic-induced collapse that bottomed out in the second quarter of last year.

Source : livemint.