The US which is part of North America and the UK, Belgium, Germany, Italy and the Netherlands which are part of Europe are expected to clock import growth of 11.4 per cent and 8.4 per cent YoY, respectively in 2021, India Ratings and Research (Ind-Ra) said in its latest report.
Ind-Ra said that India’s exports, which have been languishing for quite some time, can take advantage of the favourable trade growth outlook of 2021 and consolidate its position further than what has been witnessed in Q1 FY22.
In YoY growth terms, India’s exports grew 60.29 per cent, 195.72 per cent, 69.35 per cent and 48.35 per cent in the months of March, April, May and June 2021, respectively. “No doubt, the growth numbers reflect the depth of the COVID-19 shock last year but Ind-Ra believes they also show the strength of the current recovery, adequately captured by the monthly export number,” the report said.
The average monthly exports during Q1 FY22 jumped to $31.80 billion. The exports momentum began in March 2021, which witnessed the highest ever monthly exports of $34.45 billion. India’s average monthly exports in FY20 were $26.14 billion, nearly same as in FY14. It had peaked at $27.54 billion in FY19. However, FY22 has begun on a positive note. The sustained high monthly export number is even more noteworthy as this was also the period when the country was struggling with devastating COVID 2.0.
The pickup in Q1 FY22 exports has primarily been driven by higher exports of goods including petroleum products and cotton yarn/fabrics/made-ups. Readymade garments, another labour-intensive and crucial export commodity, witnessed monthly exports of $1.1 billion in Q1 FY22, lower than the average monthly exports of $1.4 billion witnessed during FY16-FY20.
Fibre2Fashion News Desk (KD)