BackIndia records highest-ever exports in June quarter
Trade minister Piyush Goyal said India recorded all-time high exports despite the severity of the covid pandemic and government will make concerted effort to achieve the target of $400 billion merchandise exports in FY22
PremiumIndia posted record goods exports of $95 billion in the fiscal first quarter, raising hopes of a further improvement during the rest of this year.
The quarterly performance was lifted by June exports of $32.5 billion. Exports during the quarter surged 85% from a year earlier and 18% from the same period in FY20.
Preliminary data issued by the commerce ministry on Friday also showed the trade deficit in June stood at $9.4 billion as imports came in at $41.9 billion. Non-oil, non-gems and jewellery exports netted $25.7 billion while non-petroleum and non-gold imports totalled $15 billion.
Trade minister Piyush Goyal said the record exports were achieved despite the ferocity of covid. “This gives us a glimpse of things to come. We all will now make a concerted effort to achieve the target of $400 billion merchandise exports in FY22," Goyal told reporters.
Commerce secretary B.V.R. Subramanian said India’s highest exports in any year were $330 billion in FY19. “We are preparing a detailed work programme to achieve $400 billion exports target for FY22 by setting targets for sectors and countries. We will provide details by the month-end," he added.
The government has set a merchandise exports target of $500 billion for FY23 and $1 trillion in the next five years. “So, in the next six years, services exports will be $500 billion, and merchandise exports will be $1 trillion. With annual $1.5 trillion total exports, India will have a significant share in world trade," Subramanian said.
Goyal said his ministry is looking to further simplify special economic zone (SEZ) rules. “We are in discussions with the revenue department to allow SEZs to do business with domestic tariff area. We have to keep in mind that the advantages SEZs have, the industry in the domestic tariff area should not have any unfair disadvantage. Both revenue and commerce are in constructive discussion on how to find a balance between the two," he said.
On Remission of Duties and Taxes on Export Products (RoDTEP), a new scheme, Goyal said it is at a very advanced stage and that the Centre will notify rates shortly.
Aditi Nayar, chief economist at credit rating agency Icra, said with the trade deficit narrowing by about $10 billion sequentially to $31 billion in the June quarter, the current account is expected to revert to a small transient surplus in the same quarter.
“The sharp increase in non-oil exports is encouraging, reflecting both the vaccine-driven revival in activity in many trading partners, as well as the higher prices of commodity exports," she said.
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