India posts record $23.27 bn trade deficit in November; exports up over 26%

"India's merchandise exports in April-November 2021 were $262.46 billion, an increase of 50.71 percent over $174.15 billion in April-November 2020 and an increase of 24.29 percent over $211.17 billion in April-November 2019," the commerce ministry said.

Imports in April-November 2021 grew by 75.39 percent to $384.44 billion. Trade deficit stood at $121.98 billion during the eight-month period of this fiscal. As per the data, the trade deficit widened to an all-time high of $23.27 billion as gold imports grew by about 8 percent to $4.22 billion.

The gap between imports and exports totalled $10.19 billion during November 2020. The previous record for the trade gap was $20.2 billion in October 2012.

Imports of 'petroleum, crude and products' surged 132.44 percent to $14.68 billion during the month under review. Export sectors that recorded positive growth during the month include petroleum products, handloom, engineering, chemicals, plastic and marine products.

Outward shipments of engineering goods, which accounted for 28.19 percent of the total exports in November, jumped about 37 percent YoY to $8 billion. Exports of petroleum products soared 145.3 percent on an annual basis to $3.82 billion.

However, the outbound shipments of gems and jewellery dipped by 11 percent to $2.4 billion during the month. Imports of 'coal, coke and briquettes' climbed 135.81 percent this November to $3.58 billion.

The updated trade data will be released on December 15.

Commenting on the numbers, the Federation of Indian Export Organisations (FIEO) said though the government has announced a slew of measures to support exports, the need of the hour is to soon announce an extension of the interest equalisation scheme and allow transfer of MEIS, RoDTEP and RoSCTL.

"Some of the other major issues which require the attention of the government are augmenting the flow of liquidity and empty containers, and establishing a regulatory authority to seek justification of the imposition of various charges by shipping lines, besides freight support to all exports till March 31, 2022, as freight rates have skyrocketed and are not likely to come down in the near future," FIEO added.