India’s overall foreign trade shows steady growth
Despite various headwinds, India’s overall foreign trade has shown steady growth. The country’s overall exports (merchandise and services combined) in October 2022 are estimated to be USD 58.36 billion, exhibiting a positive growth of 4.03 per cent over the same period last year. Overall imports in October 2022 are estimated to be USD 73 billion, exhibiting a positive growth of 11.82 per cent over the same period last year.
India’s overall exports (merchandise and services combined) in April-October 2022 are estimated to be USD 444.74 billion, exhibiting a positive growth of 19.56 per cent over the same period last year. Overall imports in April-October 2022 are estimated to be USD 543.26 billion, exhibiting a positive growth of 33.80 per cent over the same period last year.
Non-petroleum, and non-gems and jewellery exports in October 2022 were USD 21.72 billion, compared to USD 26.15 billion in October 2021.
The non-petroleum and non-gems and jewellery exports during April-October 2022 was USD 182.05 billion as compared to USD 176.52 billion in April-October 2021.
However, non-petroleum, non-gems and jewellery (gold, silver and precious metals) imports were USD 258.30 billion in April-October 2022 as compared to USD 198.58 billion in April-October 2021.
The estimated value of services export for October 2022 is USD 28.58 billion, as compared to USD 20.37 billion in October 2021.
India’s merchandise exports and imports rebounded strongly and surpassed pre-COVID levels during the current financial year. Despite weak tourism revenues, the country witnessed a significant pickup in net services receipts, with revenue receipts and payments crossing the pre-pandemic levels.
Net capital flows were higher at USD 65.6 billion in the first half of 2021-22 because of a revival in net external commercial borrowings, a continued inflow of foreign investment, additional special drawing rights (SDR) allocation, and higher banking capital, according to India Brand Equity Foundation (IBEF).
India achieved all-time high annual merchandise export of USD 421.9 billion in FY 2021-22 (against the export target of USD 400 billion, achieving 105.4 per cent of the target), an increase of over 43 per cent over USD 291.81 billion in FY2020-21 and an increase of 33.33 per cent over USD 313.36 billion in FY2019-20.
India’s overall exports (Services and Merchandise) touched USD 676.2 billion in the financial year 2021-2022 as both services and merchandise hit record high exports in the financial year 2021-2022. India’s overall exports were USD 526.6 billion and USD 497.9 billion in 2019-20 and 2020-21respectively, according to Invest India.
About 95 per cent of India’s merchandise trade (by volume) is handled by its maritime transport.
Foreign Trade Policy 2021-26 is expected to focus on MSMEs and new export potential by identifying potential products and services in each district, mapping geographical indication (GI) products, and setting up district export promotion panels.
In March 2021, the central government announced plans to establish a new mechanism to increase import screening to protect domestic manufacturers. The policy is also expected to boost exports of micro, small and medium enterprises (MSMEs) by adopting e-commerce platforms and support in identifying new sectors with significant export potential, revealed IBEF. (ANI)
