Engineering goods export grew 52.4% in June
India’s economic recovery will be likely led by exports especially from MSMEs while six out of the 10 lead economic and business indicators of Quick Economic Trends have shown uptrend in the growth for the month of June 2021 as compared with 5 showing the uptrend in May 2021, according to industry and trade officials.
Exports for June 2021 have shown a very impressive growth of 48% with US$32.5 billion during the month, which augurs well for the overall foreign trade sector of the country. The growth was for the fourth time in a row.
FIEO President Dr A Sakthivel reposed faith in the overall exporting community who, in these difficult and challenging times, have continuously been able to perform with vigour and dynamism.
E-way bill, Exports, Passenger Vehicle Sales, Unemployment Rate, Forex Reserves and Stock Market have registered sequential growth in June 2021 as compared to May 2021, added PHDCCI President Sanjay Aggarwal.
Passenger vehicles have shown the highest growth of 190.4% in June 2021 over the previous month of May 2021, followed by e-way bills with growth of 36.8%, unemployment rate with improvement of 22.9%, among others, noted Aggarwal.
With lead economic indicators showing an uptick for the second consecutive month in June 2021, indications are that economic recovery has begun once again, Aggarwal said.
With decline in daily cases of COVID-19 infection and resumption of economic activities, India is now set to achieve an all-time high export figures for the financial year, added Dr Sakthivel.
The top sectors, which performed impressively during the first quarter of the FY’ 2021-22 starting with 3-digit growth were Iron-ore, Rice, Cotton Yarn/Fabs/Made-ups, Handloom Products etc., Engineering Goods, Plastics & Linoleum, Organic & Inorganic Chemicals, Electronic Goods, Petroleum Products, Marine Products and Drugs & Pharmaceuticals.
June exports of engineering goods grew 52.4% as compared to the same period last year. With reference to June 2019, the June 2021 growth was 41.9%, said the Ministry of Commerce and Industry on 16 July 2021.
June 2021 engineering exports was US$8,903.5 million, up from US$6,274.9 million in June 2019 and US$5,841.6 million in June 2020. Cumulative engineering exports during April-June 2021-22 were US$24,772.6 million, a massive growth of 82% vis-a-vis April-June 2020-21, and growth of 24.8% vis-a-vis April-June 2019-20.
Overall, the merchandise exports in June 2021 were US$32.50 billion, as compared to US$21.91 billion in June 2020, a growth of 48.34%.
The significant pick up in the economic activity was observed from October 2020 which peaked in January 2021 and started declining from February 2021. It started improving again since May 2021, Aggarwal pointed out.
At this juncture, to re-build for the high growth trajectory, the Government should front-load the National Infra Pipeline expenditure as private investment are not coming in shorter period. The increased spending on infrastructure will give a multiplier effect to rejuvenate the aggregate demand in the economy. Undoubtedly, robust growth of infrastructure is the key ingredient to realize the vision of Aatmanirbhar Bharat, he stressed. #economy #exports #projects #investment #manufacturing /fiinews.com
