During H1-FY22, the top eight export items were engineering goods (27.5% share in total exports), petroleum products (14.5%), gems & jewellery (9.8%), organic & inorganic chemicals (7%), drugs & pharmaceuticals (6.1%), RMG of all textiles (3.7%), electronic goods (3.3%) and plastic & linoleum (2.5%). These constituted to 74.4% of the total exports during H1-FY22.

The report adds that the industrial production measured by the IIP crossed the pre-pandemic level in August’21 and the manufacturing PMI has been in expansion for all months in H1-FY22 barring June’21. Moreover, the capacity utilization (CU) in the manufacturing sector is assessed to have recovered in Q2-FY22 after having declined sharply in Q1-FY22 according to the RBI Governor’s credit policy address. Hence, the economy seems to be recovering from the Covid-19 induced disruptions and this would help sustain healthy export growth over the coming months. However, the elevated global crude oil prices and rising non-oil imports pose a risk to the overall trade deficit.

 Remarkable progress has been observed in exports of major items in the first six months of the current fiscal when compared over the corresponding period of FY20, pointing towards a recovery from the disruptions of last year.

Source: CMIE

Source CMIE