India reported $101.89 billion worth of exports in the previous quarter as per the ministry of commerce and industry. This is the first time that India has crossed the $100 billion mark. India managed to record $33.44 billion worth of exports in the month of September alone. In August, the figure was $33.28 billion, and July(being the highest) with $35.17 billion.
The total merchandise exports in the first six months of 2021 stand at $197.11 billion, which is 57% more than exports in the year 2020. The rise in exports can be accredited to better performance of sectors like engineering goods and petroleum products.
The humungous increase in “trade deficit”:
Trade Deficit: trade deficit arises when the imports of a country are greater than its exports.
As per the data released by Ministry of Commerce and Industry, the trade deficit in the first six months stood at $78.81 billion. Going by the data, India imported goods worth $275.92 billion from April to September. The exports stood at $197.11 billion during the same period.
A highly populous country like India usually buys more than it sells, and therefore remains mostly in trade deficit. This is because the government has to purchase some amount of goods from outside since local manufacturing alone cannot meet the aggregate demand.
What India exports and what it imports?
As per the data issued by Ministry of Commerce and Industry India exported- engineering goods, petroleum, gems and jewelry, man-made yarn and fabrics. On the other hand, India’s import mainly account for petroleum products and crude oil, and coal.
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