India’s foreign trade sector plays a vital role in the growth of its economy. It ensures the highest quality of goods and services, increases competitiveness, generates employment, improves living standards, and earns valuable foreign exchange for the country.. In this article, we will discuss Exports Surge by Over 58% in March, Imports Rise 53%.
Know about IEC Code
The Importer-Exporter Code, or the IEC Code as it is commonly known, is a mandatory requirement for anyone looking to venture into the business of importing or exporting goods to and from India.
The Covid-19 Crisis
The Covid-19 crisis has brought some of the biggest economies in the world down to their knees. The havoc played by the pandemic is a headline that is hard to ignore. The Covid-19 turmoil, too, has seen some positive outcomes amidst all the chaos. The news relating to India’s exports surge by over 58% in March 2021 provided some sense of relief to an already struggling economy.
India’s Exports 2021
India’s exports in March 2021 leapfrogged by 58.23% to reach USD 34 billion. It was in stark contrast to the USD 21.49 billion worth of exports in March 2020. The success of the ‘Make in India’ campaign, combined with the double and triple-digit growth rates in 28 out of the 30 major product groups, such as gems and jewelry, engineering, and pharmaceuticals etc.
The growth in exports is a sign of the Indian economy’s revival. In March 2020, India’s exports went down by 35% because of the lockdown. However, exports had already started showing a negative trend even before India went into lockdown.
However, as every successful story contains a pinch of salt, the news celebrating India’s exports surge by over 58% in March 2021, too, did not come without a shock. During the period April-March 2020-21, India’s exports fell by around 7.4% to reach USD 290.18 billion compared to USD 313.36 billion during the same period last year.
India’s imports increased by 53% to reach USD 48 billion in March 2021, compared to USD 31.47 billion in March 2020, leading to a trade deficit of approximately USD 14 billion. It is crucial to note that the trade deficit last year was USD 10 billion during the same time. India’s oil imports grew by a marginal 1.22% to reach USD 10.17 billion in March 2021. Non-oil imports rose by a whopping 777.12% to reach USD 37.95 billion in the same month. Similarly, gold imports, too, during March 2021, pole-vaulted to reach USD 7.17 billion.
The relieving news, though, is that imports also have shown a positive overall recovery trend. In March 2020, India’s imports dropped by 29% because of the lockdown enforced across different countries. During 2020-21, the value of imports fell to USD 388.92 billion or 18%, compared to USD 474.71 billion during 2019-20. Also, during the full fiscal year, the value of imports shrunk by 10.89% to reach USD 306.67. Moreover, oil imports during 2020-21 dipped by 37% to reach USD 82.25 billion.
As highlighted earlier, the Covid-19 pandemic has hit the Global trade and economies badly. However, signs of recovery are now visible. The WTO, in its recent estimates, has projected a growth of 8% for the global trade sector in 2021.
Moreover, if you need any other guidance concerning the IEC Code, please feel free to contact our business advisors at 8881-069-069.
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