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Current Affairs

Sectors fuelling exports

Date: 06 September 2021 Tags: Miscellaneous

Issue

A growth of 45.2 percentage was recorded in India’ exports for the month of August on year to year basis.

 

Details

  • There has been exports rise by about two-thirds to $163.7 billion in comparison to April-August FY21. This has been 23 per cent higher than April-August for FY 2020.

  • This strong performance in the first four months of the fiscal year has allowed government to aim for achieving merchandise exports of $400 billion for FY22.

  • The imports also clocked $47 billion by increasing 51.1 per cent year-on-year in August. The trade deficit has also risen to $55.9 billion from $22.7 billion a year ago.

 

Reasons behind rise in exports

  • Higher shipments of goods such as petroleum products, engineering equipments, textile, jewellery, garments have been the reason behind the rise.

  • The rise of 58.8 per cent was seen in export of engineering goods in comparison to August 2020, owing to demand from countries such as China, UAE and US.

  • Sharp rise in price of crude oil and petroleum products has created demand from foreign countries.  Exports rose 139.8 per cent this month.

  • In comparison to last year, the demand for gems and jewellery has grown. The export has grown by 88 per cent this fiscal.

 

Higher imports and deficit

  • Higher trade deficit has been witnessed due to higher gold imports. The rise in gold prices for the month of August this fiscal drove higher import value.

  • The import and demand of crude and petroleum has remained stable but it has grown by 80.4 per cent from the year-ago period as a result of improved demand for petroleum products.