According to the data from the Ministry of Commerce, India’s merchandise exports have risen 22.6% in September over last year to $33.79 billion owing to the better performance by major key sectors like Petroleum Goods and Engineering goods, while on the other hand it was reported that the Imports have increased by nearly 85% year-on-year to $56.4 billion significantly.
It is to be noted that the data also showed a widened trade deficit in September to $22.59 billion as against $2.96 billion in the same month last year.
It was estimated that the overall exports (Merchandise and Services combined) in September 2021 stood at $54.06 billion, which saw a growth of 21.44% over the same period last year.
Due to the trade surplus in services and inflow of foreign funds in stock and debt markets, RBI is not that much worried about widening the Trade deficit. Data released by the apex bank showed that the current account surplus stood at $6.5 billion in the April-June quarter.
Reports showed that the Cumulative value of exports for the period April-September 2021 stood at $197.89 billion as against $125.62 billion during the same period in April-September 2020 and registered a positive growth of 57.53% while India’s forex reserves crossed $637 billion at the end of September.