India achieves $400 billion merchandise exports well before target date

Tags: Economics/Business

For the first time ever, India’s annual merchandise goods exports crossed the $400­billion mark in FY22, nine days ahead of the target, even after registering a dip in FY21 due to pandemic. This is a key milestone in India’s Atma Nirbhar Bharat journey on the theme of “Local Goes Global - Make in India for the World”.

• This is far higher than the previous record of USD 330 billion achieved in 2018-19. 

• December 2021 recorded the highest ever monthly merchandise exports recorded at USD 39.3 billion.

• This is achieved through an increase in shipments of merchandise, including engineering products, apparel and garments, gems and jewellery and petroleum products.

• Agriculture sector too had recorded its highest­ever export during 2021-­22 with the help of export of rice, marine products, wheat, spices and sugar.

• Both Basmati and Non-Basmati varieties of rice, achieved 90-100% of the total export target.

• Engineering goods exports have gone up by nearly 50% vis-à-vis last year

• Export of Cotton Yarn/Fabrics/Made-ups, Handloom Products etc, Gems and Jewellery, Other Cereals and Man-Made Yarn/Fabrics./Made-up etc. have registered a growth rate between 50%-60%

• There was a detailed strategy in place behind the achievement of the export target, including specific targets set - country-wise, product-wise & Export Promotion Council(EPC)-wise, monitoring and course correction.

• This boost in the exports will bolster India’s position in the ongoing negotiations for Free Trade Agreements (FTAs) with several trade partners

• Despite the surge, India’s balance of trade remains negative

Efforts made to boost exports-

• The Interest Equalisation Scheme has been extended to exporters and is likely to benefit a large number of MSME exporters.

• Roll out of Export Incentive Schemes like-

• Rebate of State & Central Taxes and Levies (RoSCTL) Scheme

• Remission of Duties and Taxes on Export Products (RoDTEP) Scheme

• PLI schemes for 13 key sectors of manufacturing

• Districts as Exports Hub (DEH) initiative has been adopted to boost local production and make Districts active stakeholders in driving export growth of local products/services.

• Coordination among multiple stakeholders to set up a firm backward - forward linkage, starting from the district level to the overseas market