India achieves $400 billion merchandise exports well before target date: Commerce Minister

What is the News?

India’s Annual Merchandise(Goods) Exports have crossed the $400-billion mark for the first time ever. This is 37% higher than the previous financial year, when India exported goods worth $291 billion.

During the same time period, imports grew 51% on year to $589 billion, resulting in a trade deficit of $189 billion. The trade deficit was $114 billion in FY21.

About India’s Merchandise Trade

Engineering goods, petroleum products were the top goods exported from India.

Engineering goods exports have gone up by nearly 50% vis-à-vis last year. Higher engineering exports indicate that the misconception of India being a major exporter of primary commodities is gradually changing.

The agriculture sector too had recorded its highest-ever export during 2021-22 with the help of export of rice, marine products, wheat, spices and sugar.

What is the reason behind the rise in exports?

The major reasons for the jump in exports are 1) Rise in demand, which had fallen due to the Covid pandemic, and 2) boost in domestic manufacturing due to production-linked incentive (PLI) schemes and implementation of some interim trade pacts.

Source: This post is based on the following articles:

– “India achieves $400 billion merchandise exports well before target date: Commerce Minister” published in PIB on 23rd March 2022

– “Exports cross $400 billion annual target as goods shipments jump” published in The Hindu on 24th March 2022.

– “India achieves $400-bn export target for FY22 ahead of schedule” published in Business Standard on 24th March 2022.