Once again, the slowdown in export growth has raised concerns

According to figures released by the Ministry of Commerce and Industry, growth in India's exports slowed in January after a record surge in exports of goods in December. However, despite an increase in Omicron cases worldwide, it has been above ૩ 50 billion for the 11th consecutive month. Merchandise exports in January grew by 6.5 per cent to 2.7 billion, compared to the same period last year, as global demand for Indian products continued to grow. Exports of engineering goods, petroleum products, gems and jewelery, organic and inorganic chemicals, medicines and pharmaceuticals remained strong.

However, exports declined by 7.5 per cent over the previous month. In the first 10 months of the current financial year, India's merchandise exports stood at 2.7 billion, up 3 per cent from the same period last year. The government has set an export target of 200 billion for the fiscal year 205. Imports are also steadily rising. The country imported 21.7 billion, an increase of 2.4 per cent over the same period a year ago. As a result, India is a net importer with a trade deficit of ૭ 12.5 billion.

According to scholarly circles, declining gold movement and lower demand, the third wave of the Corona and the imposition of restrictions have helped reduce the trade deficit, which was at a six-month low of ૭ 12.5 billion in January.

India imported gold worth 4.5 billion, down 20.5 per cent from the same period last year. Overall, however, gold imports grew by 3% to 20.8 billion during April-January. Gold is the second major commodity in India's import bill.

The main reason for the increase in gold imports in 2021 is the decline in demand in 2020. We believe that gold imports will be between થી 40 billion and ૩૫ 5 billion in 205. The current account deficit is expected to widen to ૨૬ 3 billion to ૨૯ 6 billion in the third quarter of FY205. In the fourth quarter of the final year 203, it will fall to ૫ 12-13 billion.

Exports of non-petroleum and non-gems and jewelery, indicative of domestic industrial demand. It stood at 2.10 billion in January, up 13.6 per cent from the same period last year. The export sector has performed well this year, with imports being high, especially in September. The trade deficit is expected to reach an all-time high of 150 billion in fiscal year. However, the service sector has created a trade surplus, which will have an impact.