India's trade deficit at $21.7 bn in December 2021

14 Jan 2022 , 09:30 AM

According to the data released by the government on Thursday showed that India’s merchandise exports stood at $37.8 billion for the month of December 2021 as compared to $27.22 billion in the same month last year, an increase of 39%. Imports in reporting month grew 38.6% at 59.48 billion, over imports of $42.93 billion in December 2020.

Exports for April-December increased 49.6% to $301.3 billion, while imports too rose 68% to $443.82 billion for the period under review, as per government data.

Trade deficit came at $21.68 billion in December 2021 from $22.91 billion in November, according to the Ministry of Commerce and Industry.

Mr. Prahalathan Iyer, Chief General Manager, Research & Analysis, India Exim Bank said, the Export performance of USD 37 billion in the month of December 2021 is the highest in India’s history, and has exceeded the expectations. Cumulative export performance during Apr-Dec 2021 exceeded the proportionate target of USD 300 billion.

The third quarter added a trade deficit of USD 64 billion, as compared to the accretion of about USD 41 billion trade deficit in the second quarter and USD 30 billion trade deficit in the first quarter of 2021-22.

Though the trade deficit is growing exponentially, its primarily due to petroleum and gems and jewellery imports. India has headroom to accommodate further import growth that goes into manufacturing and export of value added products. It may be noted that the trade deficit under non-petroleum and non-jewellery segment amounted to just USD 35 billion during Apr-Dec 2021.