India Achieves $400bn Export Target In FY22
Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.
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By Linus Garg
First publised on 2022-03-24 07:39:18
About the Author
Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.
View all posts by this Author
India has performed exceedingly well on the export front in FY2022 reaching the $400bn target 9 days before the end of the financial year. Prime Minister Narendra Modi hailed it as a big step towards Atmanirbhar Bharat. "India set an ambitious target of $400 billion of goods exports & achieved this target for the first time ever. I congratulate our farmers, weavers, MSMEs, manufacturers, exporters for their success" he tweeted.
The success is indeed remarkable given the fact that exports stood at $291bn in 2020-21 and $313bn in 2019-20, before the pandemic. Although the high figure is in part due to higher price of commodities and a desire of some countries to diversify their sourcing (by moving away from China) in the wake of the pandemic, it is good that India has grabbed the opportunity.
The record exports were driven by the engineering sector which showed a percentage change of 46.5%, from $73.6bn in 20-21 to 107.8bn in 21-22. Other sectors which contributed handsomely were petroleum products at 141.3% ($24.7bn to $59.6bn), electronics 41% ($10.6bn to $15bn), chemicals 32.4% ($21.3bn to 28.2bn) cotton yarn and fabric 55.8% (#9.5bn to $14.8bn) and plastics 31.9% ($7.2bn to $9.5bn).
But there was record surge in imports too, from $393.6bn in FY21 to $589bn till March 21 this fiscal. That has meant that there is trade gap of $188bn this year. But the surge in exports is a heartening development as new avenues are opening. Indian goods are being accepted in many more countries and newer goods are being exported. The country should build on this and raise the level of exports further. For this, India must not raise tariff barriers on imports as some of these goods are used for inputs in goods that are exported. If exports rise significantly in the coming years, it will also reduce the trade gap.
