Thursday, 10 Oct, 2024
By: Yash Gupte
UAE and the USA continued to be India's top export destinations, while the Netherlands overtook China to claim the third-largest position in 2022–2023. Image Source: IANS
Along with exports, the imports also registered an increase from $760.06 billion from April- March 2021-22 to $892.18 billion from April- March 2022-23, taking the trade deficit to $122.00 billion.
According to the latest data released by the Ministry of Commerce and Industry, India’s overall exports in the previous financial year 2022-23 have crossed the mark of $770 billion. India’s overall exports (Merchandise and Services combined) in FY 2022-23 (April-March) is estimated to exhibit a positive growth of 13.84 per cent over FY 2021-22 (April-March). India's merchandise exports during April-March in the previous fiscal have increased to $447.46 billion as against $422.00 billion in the FY2021-22. Services exports during the 12-month period are estimated at $322/72 billion. India’s overall exports from April- March 2022-23 stood at $770.18 billion as compared to $676.53 billion in April- March 2021-22. Along with exports, the imports also registered an increase from $760.06 billion from April- March 2021-22 to $892.18 billion from April- March 2022-23, taking the trade deficit to $122.00 billion.
India's imports from Russia increased by approximately 370 percent to over $46 billion in 2022–2023, driven by discounted oil exports. Russia is now India's fourth-largest import source country, after China, United Arab Emirates, and the United States. Russia's import share increased from 1.6 percent in 2021–22 to 6.5 percent last year.
UAE and the USA continued to be India's top export destinations, while the Netherlands overtook China to claim the third-largest position in 2022–2023. Dutch exports to India increased significantly from less than 3 percent in 2021–22 to 4.7 percent in 2022–23, a startling 66.6 percent increase year over year. Even though the value of shipments to their shores decreased by 27.8 percent and 9.9 percent, respectively, Bangladesh and Hong Kong remained among India's top 10 export markets.
Source: Ministry of Commerce and Industry
Union Minister of Commerce and Industry Piyush Goyal recently while delivering a speech at the ASSOCHAM annual session 2022-23 said that this is a record-breaking accomplishment that comes as the nation celebrates Azadi Ka Amrit Mahotsav as the nation marks its 75th year of independence. Mr. Goyal mentioned that there has been robust growth in both the merchandise and service sectors while speaking at the ASSOCHAM Annual Session 2023 in New Delhi. He added that the G20 presidency has provided India a special opportunity to position itself globally and that businesspersons and the industry must make use of this to promote India's products around the globe.
One thing which needs to be and can be clearly understood from the above chart is that India’s exports per month in the current fiscal year stands at an average of $60 billion. The month of December registered the highest exports of goods and services. December 2022 recorded exports worth $69.32 billion, highest in current financial year followed by June 2022 when the exports were recorded at $69.21 billion. On the other hand, the lowest exports worth $56.97 billion were recorded in the month of October. India’s total exports in the month of March 2023 stood at $66.14 billion. Though India’s total exports increased in the month of March to $66.14 billion from $63.02 billion in February, the exports in March 2023 declined by 7.53 percent as compared to March 2022. India’s total exports in the month of March 2022 stood at $71.52 billion. The fall in exports and increase in imports is the reason behind India’s rising trade deficit.
Source: Ministry of Commerce and Industry
The country’s merchandise exports in March 2023 were $38.38 Billion, as compared to $44.57 Billion in March 2022. Merchandise imports in March 2023 were $58.11 Billion, as compared to $63.09 Billion in March 2022.
India's merchandise trade deficit increased to $266.78 billion in the fiscal year that ended in March 2023 from $191.05 billion the year before as import costs rose as a result of rising petroleum product prices and exports remained weak due to global headwinds. Under merchandise exports, 17 of the 30 key sectors exhibited positive growth during FY 2022-23 (April-March) as compared to FY 2021-22 (April-March). These include Oil Meals (55.13%), Electronic Goods (50.52%), Petroleum Products (40.1%), Tobacco (31.37%), Oil Seeds (20.13%), Rice (15.22%), Coffee (12.29%), Fruits & Vegetables (11.19%), Other Cereals (9.74%), Tea (8.85%) and etc.
Source: Ministry of Commerce and Industry
Talking about India’s service trade, the estimated value of services export for March 2023 is $27.75 Billion, as compared to $26.95 Billion in March 2022. The estimated value of services import for March 2023 is $14.07 Billion as compared to $15.35 Billion in March 2022. The country’s service trade in FY2022-23 was recorded at $322.72 billion as compared to $254.53 billion in FY2021-22. In case of import of services, in FY2022-23 services worth $177.94 were imported as compared to $147.01 billion in FY2021-22. The data clearly indicates that the trade of services is extremely beneficial for India as the India has a trade surplus in case of services unlike the merchandise. In case of merchandise, India has been experiencing a trade deficit whereas in the case of service trade, it has been recording a trade surplus of $144.78 in FY2022-23 as against $107.52 billion in FY2021-22.
According to Arun Kumar Garodia, Chairman of Engineering Export Promotion Council of India, “The impact of economic slowdown in major advanced economies has been visible in global trade. However, India has still managed to minimise the impact by taking several policy measures such as expanding the rupee trade, roll-back of export duty on specified steel products, and easing procedures.”
Source: Ministry of Commerce and Industry
India’s overall exports (merchandise and services combined) rose by 13.84 per cent year-on-year to $770.18 billion in 2022-23. Overall imports rose at a sharper pace of 17.38 per cent to $892.18 billion. India’s overall trade deficit widened to $122 billion in 2022-23 as against $83.53 billion in the previous year. Considering the rising trade deficit, the Union government is considering a number of actions. India wants to reduce the amount of inexpensive, non-essential imports through quality control orders (QCOs) and to replace imports with domestic manufacturing by rewarding manufacturers through PLI programmes. By investigating its export potential in fintech, the financial services industry, transportation, accounting, and legal services, the government is attempting to enhance India's exports of services from the non-IT sector. India is aiming to establish FTAs and lower tariffs with countries that have a significant market for Indian textiles, but it is also talking with SEZs about how to use their built-up space to enhance services in rural areas.
