India's commodity exports, especially petroleum, electronic and chemical products,  rose 24.22% year-on-year to the US $ 38.19 billion in April, preliminary data released on Tuesday said.

 

Imports increased 26.55% to $ 58.26 billion, leaving a large trade deficit in the first month of Fy23. The trade gap was $ 20.07 billion, compared with $ 15.29 billion in the year-ago quarter and $ 18.51 billion in March 2022.

 

 Petroleum products (113.21%), electronic products (64.04%), and chemical products (26.71%) paved the way for a surge in exports in April.

 

The commerce ministry said,” In April we recorded the highest exports as the April exporter jump to 24.22% continuing the record-breaking 2021-22  exports.

 

 A Sakthivel, the president, of the Federation of Indian Export Organisations (FIEO), said,” Labour-intensive sectors also contributed to exports basket that is helpful for job creation in the country”.

 

Exports of technical goods increased 15.38% year-on-year last month. 

 

"Despite geopolitical challenges,  engineering product exports continue to grow last year," said Mahesh Desai, chairman of EEPC India.

 

In comparison to April 2021, the price of gold imports decreased by 73% and imports of petroleum and crude oil rose to 81.21% 

 

 "The increase in the trade deficit from $ 15.3 billion in April 2021 to $ 20.1 billion in April 2022 was entirely due to oil," said Adity Nayal, chief economist at ICRA.

 

Although the non-oil trade deficit is stable, the decline in gold imports has been offset by the increase in non-oil non-gold imports such as coal and chemicals, and the composition has changed, Nayar said. However, the expected consequences of rising commodity prices are caused by the conflict between Russia and Ukraine. " 

 

 According to the data, imports of non-oil, non-gold, silver, and precious metals, which are indicators of the strength of domestic demand, increased by 29.68% in April.

 

Nayar said the trade deficit could be increased by $ 20 billion in most months of FY 23 if commodity prices do not fall significantly.

 

 “There are certain challenges that are hitting both the engineering and other departments, such as high logistics costs and rising raw material costs,” says Desai.

 

FIEO has promoted logistical support in this sector due to the increased cost of cargo, as well as the use,  expansion, and effectiveness of scrips under various programs.