In a clear indication that Indian economy is picking up after being hit hard by Covid-19 pandemic, imports went up by 7.6% to $42.6 billion in December 2020 though exports recorded 0.8% downfall at $26.9 billion on account of lower shipment of oil products to United Arab Emirates (UAE) and parts of Europe.
As a result, the trade deficit widened to $15.7 billion, which is the highest since January 2020, states the preliminary numbers released on Saturday by the commerce department.
The sectors that recorded double-digit export growth are, drugs and pharmaceuticals, chemicals, electronic goods, and iron ore, while the fall in oil prices resulted in a sharp decline of 40% in the value of petrol and diesel that were shipped out of the country in December month.
Countries like Singapore have increased the purchase of fuel from India and large buyers like the UAE have decreased imports by approx 50%.
Gems and Jewellery (6.7%) and Engineering goods (0.1%) were among the major export items that have shown the sign of recovery. The readymade garments sector suffered by falling 15% in December month.
With the beginning vaccination drive against Covid-19 has started to take place in many parts of the world, exporters seemed positive. Meanwhile, many exporters have suggested keeping a watch on the numbers in the coming months.
SK Saraf, president of Federation of Indian Export Organisations, a lobby group, told the Times-News Network, "The New Year has brought a ray of hope and optimism for all from the worst of Covid-19 and vaccines are expected to bring both life and economy back on growth trajectory with a V-shaped recovery in world trade. Arrival of vaccines have also helped in boosting the business sentiments for the sector as a whole, which can be seen from the positive figures of the upcoming months."
