Although exports are about $2 billion lower than in July, when it hit a monthly record of $35.4 billion, August’s levels are in line with the rate needed to touch the $400 billion target for the current fiscal.
During April-August, exports were estimated at $163.7 billion, meaning monthly shipments should be valued at $33.7 billion during the remaining seven months of the year.
Part of the increase in exports can be attributed to shipments of petrol and diesel. Official data showed non-oil exports rose 36.6% to $28.6 billion, while petroleum products exports rose 139% to $4.6 billion in August, driven by a hike in global prices.
Oil products were the second largest item in India’s export basket, along with gems and jewellery, the third largest, also rising 88% to $3.4 billion. Engineering goods, which accounted for about 30% of India’s exports during the month, grew a comparatively modest 59 per cent to $9.6 billion.
“Both oil and non-oil exports declined in August 2021, coupled with logistical challenges, along with growing fears related to the spread of the delta variant,” said Aditi Nair, chief economist, ICRA.
Among the top imports, oil shipments rose 80% to $11.6 billion, with gold rising 82% to $6.7 billion, the highest in five months. But iron and steel saw a 108% increase, with total imports totaling $1.3 billion.
With the rise in commodity prices, a significant increase has been observed in the value of shipments. In addition, freight rates have increased, leading to increased demand from industry bodies such as FIEO to offer support.
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