Exports may be on a path of recovery with the merchandise sent to foreign nations in July reaching almost the same levels as a year ago, Commerce and Industry Minister Piyush Goyal said on Tuesday.
Exports may be on a path of recovery with the merchandise sent to foreign nations in July reaching almost the same levels as a year ago, Commerce and Industry Minister Piyush Goyal said on Tuesday. “Our exports have almost reached last year’s July level, with nearly 90 per cent of our export of July 2019 having come back,” he said, adding that if oil related exports are removed, in which India is largely a small value adder, almost more than 95 per cent on the revival of our exports has been achieved. Several other indicators are also indicating an economic recovery.
Reiterating Prime Minister Narendra Modi’s dream of Atma Nirbhar Bharat, Piyush Goyal said that the country “today is in a mood” to not just revive economic activities but also to become self-reliant. He also hammered on improving the quality and competitive pricing of the products. The commerce ministry is to release the official export numbers for the month of July and is expected to announce them during mid-August.
June was the fourth month in a row where India reported a fall in exports. Exports were down in key categories including petroleum and textiles, however, India’s trade turned surplus for the first time in 18 years as imports nosedived by a massive 47.59 per cent. Exports in value terms were down by 12.41 per cent to $21.91 billion in June on the back of weak global demand amid the coronavirus pandemic. The rate of contraction of the country’s total merchandise shipments slowed down to 36.7 per cent in May and 12.41 per cent in June after witnessing a record fall of 60.28 per cent in April, the month when India followed one of the strictest lockdowns in the world.
Meanwhile, exporters are losing over two-thirds of duty remission benefits after government capped MEIS outlay. The government has set an upper limit of Rs 9,000 crore on Merchandise Exports from India Scheme (MEIS) for the April-December period.