The Economic Survey 2022 tabled in the Parliament said that the Indian merchandise exports are expected to grow by 16.5 per cent in 2021-22 surpassing pre-pandemic levels. Similarly, it adds that imports are expected to grow by 29.4 per cent in 2021-22 surpassing corresponding pre-pandemic levels. However, the survey’s first advance estimate of year 2021-2022 showed that imports constitute 23.1 per cent of GDP while exports constitute 20.1 per cent of the total GDP.
The Centre has targeted $400 billion in merchandise exports for the current fiscal and an ambitious $1 trillion by 2030.
“We are certain to cross to $400 billion in FY22, we expect to reach between $400 billion to $420 billion and in fact what had been reassuring that the order booking position of Indian exporters is pretty good. That is why we are hopeful that the trend will continue in the next year also,” said Ajay Sahai, Chairman of the Federation of Indian Export Organizations.
“India’s exports of both goods and services have been exceptionally strong so far in 2021-22. Merchandise exports have been above $30 billion for eight consecutive months in 2021-22. During 2021-22 (April-December), the merchandise exports recorded growth of 49.7 per cent to $301.4 billion, compared to corresponding period of last year and 26.5 per cent over 2019-20 (April-December), exceeding the pre-pandemic levels. Out of an ambitious export target of US$ 400 billion set for 2021-22,” the Survey said.
The Economic Survey also mentions that India is well on track as far as attaining the export target is concerned. In December, merchandise exports and imports were at all-time highs; the exports surged a record 38.91 per cent on-year to $37.81 billion and imports too rose a record 38.55 per cent to $59.48 billion, widening the trade deficit to $21.68 billion.
“The merchandise imports grew at the rate of 68.9 per cent to $ 443.8 billion in April-December, 2021 over the corresponding period of last year and 21.9 per cent over April-December, 2019, crossing the pre-pandemic levels. Like in the case of merchandise exports, India’s services exports recorded growth of 18.4 per cent to US$ 177.7 billion during 2021-22,” the Economic Survey added.
Out of an ambitious export target of $400 billion set for 2021-22, India has already attained more than 75 per cent of it by exporting goods worth $301.4 billion, which is actually higher than the export target of $300 billion set for the April-December period of 2021-22, the Survey highlighted.
“For the next year, I think we should build on the mere fact that, this year in 2021-22 will be adding around $110 to $120 billion dollar, so I expect that same type of growth to continue because of numerous factors- one is the order booking position as people are looking for an alternative to China and India is definitely on the radar of the global companies. Secondly, because of PLI Schemes the additional production will be added to the export base of the country. So, we are looking towards maintaining the same kind of momentum will be achieved in 2021-2022,” Sahai of FIEO said.