The last year has seen many disruptions to the Indian economy, the primary reason being the worldwide Covid-19 pandemic. Yet, India’s export have fared better than expected, continuing to be ahead of export targets divulged Minister of Commerce and Industry, Piyush Goyal.
In interaction with bankers and exporters, Goyal said India would export about $190 billion worth of goods by the end of September 2021.
He also mentioned that this is the first time the country has crossed such a figure within six months of the financial year.
The Vanijya Saptah held in Mumbai was jointly organized by the Department of Commerce, Directorate General of Foreign Trade, Export Credit Guarantee Corporation of India, Export-Import Bank of India.
“Exports are the cusp of exponential growth. Government is working to bring a quantum leap in quality, productivity, and efficiency to make our export basket bigger, better and broader,” the Union Minister said.
45% Growth in India’s Export
In August, India’s exports rose to 45.17% to reach $33.14 billion. Between April and August of this year, the exports increased by 66.92%. Imports for the same duration rose by 81.95% to $ 219.54 billion.
The increase is driven by healthy growth in different sectors, including engineering, petroleum products, gems and jewellery and chemicals, according to provisional data from the commerce ministry.
The country’s export target for the current fiscal year is $400 billion. B.V.R Subrahmanyam, the Commerce Secretary, is confident of achieving the target.
Non-petroleum Exports Register Positive Growth
Non-petroleum exports accounted for $28.58 billion in August 2021, a net positive growth of 36.57% compared to the same time last year. Exports of engineering rose by 59%, and gems and jewellery increased by 88%.
The increase in exports of petroleum products was at a whopping 140% reaching $4.55 billion.
Importance and Reasons for Growth
The steady recovery of India’s economy posts the second wave of the pandemic mostly depends on improving merchandise exports. Amid the disrupted world trade, India’s exports are rising faster than ever before.
Exports play a crucial role in revenue generation, and economic growth and higher exports are necessary for rapid growth in GDP and domestic output.
International trade also plays a significant role in diplomatic relations between the two countries involved in the business.
The top five commodity groups that Indian exported most during July 2021 were petroleum products (215 per cent), gems and jewellery (130 per cent), other cereals (70.25 per cent), manufactured yarn and fabrics (58 per cent) and cotton yarn and fabrics (48.02 per cent).
The record spike in exports in the year is caused by the high increases in the exports of petroleum products and gems and jewellery exports. The highest increase in exports was to the United States, United Arab Emirates, and Belgium.
The sharp rise in global demand as the markets around the world rebound from the impact of Covid-19. India is making the most of the increased demand, as seen in the rising export rates.
Indian government taking measures to make India an export-led economy. To become an exporter and manufacturing hub for the world is the goal for India going forward in the rebuilding process. Currently, China enjoys the position of a primary manufacturing hub for the world.
Rising exports are a good sign for India as countries recover from the impact of covid disruptions.
To continue the steady growth government has to take steps to boost the country’s export sector further.
Some measures include tax-sops on specific exports, interest subvention schemes and signing free trade deals.
