India\u2019s exports have risen sharply in this fiscal year. However, <\/span>India\u2019s imports have also risen sharply during the same period, leading to a sharp uptick in India\u2019s fiscal deficit.\u00a0<\/span><\/p>\n India\u2019s exports between April and December 2021 has reached $301.4 billion. This is an increase of 49.7% year-on-year period. This has also put the country on track to hit a target of $400 billion in merchandise exports.\u00a0<\/span><\/p>\n Exports of two traditional sectors \u2014 petroleum products and gems and jewellery \u2014 have been key contributors to the export growth.<\/span><\/p>\n The export demand has risen due to: a)<\/strong> worldwide increase in trade and b)<\/strong> Outbreaks of Covid-19 infections in key competitors such as Vietnam, leading to disruptions in supply.<\/span><\/p>\n India\u2019s merchandise imports have grown even faster than exports. It has reached $443.8 billion, a 68.9% year-on-year increase.<\/span><\/p>\n Key imports for India during this fiscal include petroleum and petroleum products, gold and electronic goods.<\/span><\/p>\n But the higher imports of machinery, electronic goods, vegetable oil, coal, and chemicals were key contributors to the sharp uptick in imports.<\/span><\/p>\n The rise in imports has led to an increase in the trade deficit to $142.4 billion in the April-December period.<\/span><\/p>\n India\u2019s services sector has a trade surplus which is estimated to be about $74.4 billion.<\/span><\/p>\n India is currently in the process of negotiating <\/span>free trade agreements (FTAs)<\/a> <\/span>with the UK, UAE, Australia, Israel and the EU.<\/span><\/p>\n But <\/span>India is no longer signing free trade agreements (FTAs) just to join a group. Instead, India is looking for reciprocal access, good market conditions, and fair play in trade in both goods and services.<\/span><\/p>\n Source<\/b>: This post is based on the article \u2018<\/b>Buoyant exports but unfavorable trade balance: Why there is a dichotomy\u2019 <\/b>published in Indian Express <\/b>on 24th January 2022.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":" What is the News? India\u2019s exports have risen sharply in this fiscal year. However, India\u2019s imports have also risen sharply during the same period, leading to a sharp uptick in India\u2019s fiscal deficit.\u00a0 How have Indian Exports and Imports performed in the Fiscal Year 2021-22? Exports India\u2019s exports between April and December 2021 has reached… Continue reading Buoyant exports but unfavorable trade balance: Why there is a dichotomy<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[10500],"class_list":["post-164202","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1700554596},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/164202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=164202"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/164202\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=164202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=164202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=164202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}How have Indian Exports and Imports performed in the Fiscal Year 2021-22?<\/b><\/h5>\n
Exports<\/b><\/h6>\n
Imports<\/b><\/h6>\n
Trade Deficit<\/b><\/h6>\n
How is India planning to overcome the trade deficit?<\/b><\/h5>\n