India’s exports hit a record high of $418 billion in 2021-22
- Exports exceeded the target by about 5% and recorded a 40% growth over the previous year
India’s merchandise exports touched a record $418 billion in 2021-22, exceeding the government’s target by about 5% and recording a 40% growth over the previous year, official data showed.
Exports touched $40.38 billion in March from $34 billion in the year earlier, led by robust growth in petroleum products, engineering, gems and jewellery, chemicals, and pharmaceuticals, data released by the ministry of commerce and industry showed on Sunday.
The department of commerce had set a merchandise export target of $400 billion for 2021-22, up from $292 billion in 2020-21.
“India has exported $418 billion for the first time in its history. This is more than the target. It has crossed $40 billion in exports in March alone, the maximum in a single month. India’s diversified export portfolio in 2021-22 shows India’s manufacturing abilities, and growth in hi-tech goods, electronics, and agricultural products.,” commerce and industry minister Piyush Goyal said at a press briefing on Sunday.
The minister pointed out that the free-trade agreements (FTAs) India is entering into are aimed at increasing exports of finished or intermediate goods. “Iron ore and cotton are two raw materials that we are exporting in a big way. We are also largely exporting processed goods. The FTAs we are negotiating are also aimed at increasing exports of value-added goods,” he said.
Commerce secretary B.V.R. Subrahmanyam pointed out that India was no longer an exporter of primary goods.
India concluded an interim trade deal with Australia on Saturday, with more than 95% of Indian goods getting duty-free access to the Australian market from the day of implementing the pact. In February, India and the UAE also signed a comprehensive FTA, which will immediately eliminate duties for 90% of India’s exports to thin value terms to the UAE, covering sectors including gems and jewellery, textiles, leather, and engineering goods from the day the pact comes into force.
India’s exports are gradually moving towards manufactured goods, visible in engineering and electronics goods exports, director-general of foreign trade Santosh Sarangi pointed out. Electronics goods are one of the top items in India’s import basket, after gold. These witnessed a 40% jump in FY22, following a massive push from the production-linked incentive scheme, Sarangi said.
Export of non-petroleum goods was up by more than 30% at $352.76 billion.
Exports are better than expectations, said Aditi Nayar, chief economist, Icra. “We had expected merchandise exports to touch $415 billion, and the robust March exports have led to this figure being crossed. A portion of the upside may have been led by rising commodity prices, but the performance has been laudable,” Nayar said. With that, the current account deficit is expected to recede to under $20 billion in the fourth quarter of 2021-22 from $23 billion in Q3.
Economists expect imports to also touch the highest ever on account of elevated prices of global crude oil and commodities. Imports rose 51% to $589 billion last fiscal year, resulting in the widening of the trade deficit to $189 billion. The top five export destinations for India are the US, the UAE, China, Bangladesh, and the Netherlands.
A significant share of the exports of $418 billion is to developed countries, Sarangi said. The US is our biggest market for engineering goods, while the UAE is our largest market for petroleum products. The Netherlands are the largest market for drugs and pharma.
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Business NewsEconomyIndia’s exports hit a record high of $418 billion in 2021-22
First Published:4 Apr 2022, 06:41 AM IST
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