The low base effect powered India’s merchandise exports to grow by over 195 per cent on year-on-year basis last month. In April 2021, exports grew to $30.63 billion, higher by 195.72 per cent over the $10.36 billion reported in April 2020.

“As compared to April 2019, exports in April 2021 exhibited a positive growth of 17.62 per cent in dollar terms and 26.17 per cent in rupee terms,” an official statement on foreign trade said.

“Non-petroleum and non-gems and jewellery exports in April 2021 were $23.62 billion, as compared to $9.08 billion in April 2020, registering a positive growth of 160.24 per cent.” As compared to April 2019, the non-petroleum and non-gems and jewellery exports in April 2021 registered a positive growth of 20.47 per cent.

Similarly, India’s merchandise imports grew in April 2021, rising to $45.72 billion, with an increase of 167.05 per cent over $17.12 billion in April 2020.

“Imports in April 2021 has registered a positive growth of 7.87 per cent in dollar terms and 15.71 per cent in rupee terms in comparison to April 2019.”

“Oil imports in April 2021 were $10.87 billion which was 133.24 per cent higher in dollar terms compared to $4.66 billion in April 2020. As compared to April 2019, oil imports in April 2021 were 5.98 per cent lower in dollar terms and 0.85 per cent higher in rupee terms.” According to the data, non-oil imports in April 2021 were estimated at $34.85 billion which was 179.70 per cent higher in dollar terms compared to $12.46 billion in April 2020.

“As compared to April 2019, non-oil imports in April 2021 were 13.07 higher in dollar terms and 21.28 per cent higher in rupee terms.” “Non-oil and non-gold imports were $28.61 billion in April 2021, recording a positive growth of 129.68 per cent, as compared to non-oil and non-gold imports of $12.46 billion in April 2020. Non-oil and non-gold imports in April 2021 recorded a positive growth of 6.56 per cent over April 2019.” Consequently, the trade deficit in April 2021 rose to $15.10 billion over $6.76 billion in April 2020.

Meanwhile, lower food prices sequentially eased India’s retail inflation in April as the Consumer Price Index (CPI) decreased to 4.29 per cent from 5.52 per cent in March. According to the data furnished by the National Statistical Office (NSO), the CPI Urban rose by 4.77 per cent last month from 6.52 per cent in March. Similarly, the CPI Rural climed by 3.82 per cent in April from 4.61 per cent in March. As per the NSO data, Consumer Food Price Index increased to 2.02 per cent last month from a rise of 4.87 per cent in March.

The CFPI readings measure the changes in retail prices of food products. Prithviraj Srinivas, Chief Economist at AXIS CAPITAL, Mumbai said, “April CPI fell as expected, largely on weaker food and non-food prices, except for fuel, housing and health. We had projected a sharper decline to 4%.” “This dip is due to base effects and will prove short-lived, with subsequent CPI readings coasting near 5% in coming months. The biggest risk to CPI staying within RBI’s comfort band comes from COVID-19 infections in the hinterland impacting market supply. We remain watchful.”

GOAIR PLANS IPO: Indian budget carrier Go Airlines Ltd has filed for an initial public offering aiming to raise 36 billion rupees ($491 million), a move that comes as airlines try to bolster finances to cope with the latest disruptions caused by the pandemic.

A second wave of COVID-19 infections in India is taking a heavy toll on domestic airlines, which were taking initial steps back towards normality after a nationwide lockdown hampered their operations for months in 2020.

The company, which is in the process of rebranding itself as “Go First”, plans to use the money raised from the IPO to repay loans, which total more than 20 billion rupees, and clear other dues, it said in a filing.

“The COVID-19 pandemic has had an adverse impact on our business ... the duration and spread of the pandemic or another pandemic could result in additional adverse impact on our business,” Go Airlines said in the filing.

The airline has a current fleet of 55 Airbus narrow body planes and is due to take delivery of 98 more starting this year.

The airline’s founder and majority owner is the Wadia group, which runs textiles company Bombay Dyeing and Manufacturing Co Ltd and biscuit maker Britannia Industries.

The company’s share offering may also include an additional share issue worth up to 15 billion rupees, the filing said.

India’s airlines are under renewed pressure to raise cash or take steps to downsize or consolidate. They are expected to report total losses of $4 to $4.5 billion in the fiscal year ended March 31 and may lose a similar amount this year, aviation consultancy CAPA India said.