Commodity exports in seven of the top 10 markets exceeded the official target in FY22 but India has yet to meet its ambitious $ 400 billion target but achieved a record $ 422 billion in overseas shipments in the last fiscal year, more than was sent to many other economies. For deficit.
It reflects the deep penetration into the market by Indian exporters and suggests that the country’s long-standing diversification strategy is beginning to be reflected.
Data from DGCIS in the top 40 markets indicates that exports to the UAE, China, Hong Kong, Singapore, the United Kingdom, Germany and Nepal ranged from 79% to 99% of the corresponding FY22 target (see chart). Exports to Malaysia and Russia fell further dramatically, hitting 77.6% and 78.5% of full-year targets, respectively.
Of course, exports to all these markets still exceeded the FY21 level when the epidemic severely disrupted the global supply chain and resulted in India’s exports of overseas goods falling 6.6% year-on-year to $ 291 billion.
However, a strong return to exports to other major markets across the continent, including the United States (111.1% of the target), Bangladesh (129.4%), the Netherlands (115.3%), Belgium (120.5%), and Saudi Arabia (118.1%). , Indonesia (124.1%), Turkey (117.1%), Italy (115.4%), South Korea (144.7%) and Brazil (124.6%) – increased overall numbers and highlighted the broad-based nature of growth.
Interestingly, exports to Australia and Taiwan, which seek to diversify from war-torn China, are $ 8.06 billion and $ 2.7 billion, respectively – or 165.9% and 142.1% higher than the corresponding targets for FY22.
Overall, at 36 364 billion, exports to the top 40 markets exceeded the 35 355 billion target set for them.
Significantly, India’s exports to China remained flat at .2 21.2 billion, but imports from neighboring countries rose 44.4% to $ 94.2 billion, leaving a record trade deficit of $ 73 billion, or about 63% of bilateral trade. This brings to the fore the urgency of tackling the massive influx of low-grade products from Beijing at low prices, says a senior industry executive.
In an unusual move, the Commerce Ministry last year set export targets for each of the top 40 markets, with zero in only a few economies or instead setting a full-year target.
The ministry then followed Prime Minister Narendra Modi’s directive to enable exporters to make better money in global industrial revival through regular meetings with stakeholders and foreign missions for targeted intervention.
“If we can surpass a high target in FY22, despite lower-than-expected growth in seven of the top ten markets, it only suggests that once we consolidate our position in this traditionally large market, we can achieve more exports. Moreover, in some other economies there was more than encouraging exports. This means that the focus on diversity is bearing fruit, “an official source told FE.
Before reaching $ 422 billion in FY22, merchandise exports from FY11 fluctuated between $ 250 billion and 330 billion; The previous highest export was $ 330 billion at FY19. However, after successfully tackling the damage caused by the two coveted waves, Indian exporters now face new uncertainties from the Russia-Ukraine war that has disrupted already burdened global supply chains and skyrocketed shipping costs.
Nevertheless, the silver lining is that, despite these setbacks, exports of goods in April exceeded the $ 40-billion mark by 30.7%, a record for the first month of any fiscal year.