Page 123 - economic_survey_2021-2022

External Sector 97

Figure 8: Top ten Import Sources in 2021-22 (April-November) [By Share in Per cent]

Source: Department of Commerce

Merchandise Trade Balance

3.28 As enumerated above, owing to the recovery of global demand with a revival in domestic
activity as well as in many trading partners, both the merchandise exports as well as imports
rebounded strongly and surpassed pre-pandemic levels leading to an increase in merchandise
trade deficit. It stood at US$ 142.4 billion in April-December, 2021 compared to deficit of US$
61.4 billion in corresponding period of last year and US$ 125.9 billion in April-December, 2019.
The merchandise trade deficit widened after bottoming out in Q1: FY 21 (Figure 9).

Figure 9: Increasing Merchandise Trade Balance due to high growth in exports and imports

Trade Balance Exports (RHS) Imports (RHS)
40 120

20 80
49.7
0 40
US$ Billion -20 39.0 0 Growth rate (y-o-y), Per cent

-40

-60 -40

-80 -80
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2019-20 2020-21 2021-22 (P)
Source: Department of Commerce
Note: P: Provisional.

3.29 Table 3 shows India’s merchandise trade balance with major countries during 2021-22
(April-November) compared to 2020-21 (April-November). India had the most favourable trade
balance with USA followed by Bangladesh and Nepal.