Substantial changes in import data for April-November 2024 have been made by the government not only for gold and silver but also electronics, per an analysis carried out by research body Global Trade and Research Initiative.

The sharp revisions made by the Directorate General of Commercial Intelligence and Statistics (DGCI&S) in import data, updated on its website on Wednesday, highlight the need for accurate trade documentation in the absence of which the government may find it difficult to take astute policy decisions or remedial trade actions, point out some experts.

The Commerce & Industry Ministry clarified on Thursday that the revision was due to double counting of imports related to SEZs. “During the reconciliation exercise, primarily, it was observed that due to migration of data transmission mechanism from SEZ to ICEGATE, figures of precious metals needed revision as it was noticed that the system was calculating both imports into SEZ and subsequent clearance into DTA (domestic tariff area) as separate transactions after the migration,” per a government statement.

Panel formed

A committee has been formed with stakeholders from DGCIS, DG Systems (CBIC) and SEZs for creation of a robust mechanism for publishing consistent data, it added. “Trade data is supposed to be recorded on real-time basis. If such data discrepancy is showing up, obviously there are problems in the EDI (electronic data interface) system and glitches need to be fixed. If the government does not have reliable data, how is it going to take action on trade remedies against unscrupulous exporters from other countries and stop them from getting unfair access to India,” said Biswajit Dhar, Distinguished Professor, Council for Social Development.

Dhar further pointed out that policy decisions, including ones taken in the Union Budget, depend on various data collected by the government and big discrepancies could lead to problems there.

The biggest revision in import figures in the April-November 2024 period happened for gold with a fall of $11.7 billion in estimated imports to $37.38 billion after the revision from $49.08 billion announced earlier. Import data from all major source countries including the UAE, Switzerland, South Africa, Australia and Hong Kong, witnessed major revision in the April-October 2024 period, the GTRI report noted.

Electronics import

India’s electronics imports data for April-November 2024 were revised to $61.2 billion from $63.9 billion, a reduction of $2.7 billion, it added.

In the same period, imports of silver declined to $2.33 billion from $3.28 billion, marking a $0.95 billion drop. “The revisions highlight discrepancies in earlier data reporting and underscore the need for accurate trade documentation, especially in high-value commodities like gold,” according to the GTRI report.

Data adjustments have significant implications for trade policy, revenue calculations and economic planning, pointed out Ajay Srivastava from GTRI. “Ensuring more accurate and timely data collection, minimising reporting errors and improving verification mechanisms will be essential to avoid such large-scale corrections in the future and to provide a clearer picture of India’s trade performance,” the report said.