As India’s exports reached its $400 billion merchandise target for FY2022, Prime Minister Narendra Modi hailed the achievement as an “important milestone” in the country’s “Aatmanirbhar Bharat journey” on Wednesday.
The aim was met with 10 days to spare. India’s exports exceeded $400.8 billion on March 21, and total fiscal exports are likely to exceed $410 billion by the end of the month.
“India set an ambitious goods export target of $400 billion and achieved it for the first time. I congratulate our farmers, weavers, MSMEs, manufacturers and exporters for this success,” Prime Minister Narendra Modi shared in a tweet.
Modi tweeted that the objective was met nine days ahead of schedule, which is equivalent to $33 billion in exports every month, $1 billion in exports per day, and $ 46 million in exports every hour of the year.
The Commerce Department is anticipated to provide further information later today, but current data reveals that total exports increased by 45.8 percent in April-February FY22 (2021-22) compared to the same period in FY20 (2019-20). Total exports were $374 billion as of February, up from $256.5 billion in 2019-20. Only in the previous two months has there been an economic slowdown as a result of COVID.
Following a rough FY21 highlighted by lockdowns and restrictions, exports began to rise at the close of the fiscal year. They have climbed every month in the current fiscal year till February. All key export categories have steadily increased.
According to officials, while commodity price increases contributed to the increase in exports, many goods, including auto components, motor vehicles, cereal preparations, buffalo meat, rice, carpets, processed fruits and juice, also saw increases in overall export volumes despite stagnant or declining commodity prices.
Another crucial element fueling the growth in exports, according to experts, is the pent-up worldwide demand that went unfulfilled throughout the big waves of the Covid-19 epidemic. An expansionary monetary policy implemented by developed nations in response to the economic impact of the epidemic has increased demand for Indian products.
Gems and jewellery, India’s second-largest export sector, too showed a significant increase in revenues. Overall, exports in this sector reached an all-time high of $32 billion, accounting for about 10% of India’s total exports.
Diamond exports increased to $20.7 billion in the first ten months of FY22, up from $17 billion in the same period last year. Meanwhile, gold-studded jewellery exports increased to $9.2 billion, up from $6.5 billion a year before.
The entire global exports of the gems and jewellery sector in 2020 were $693 billion. India ranks seventh on the list with a share of 3.5 percent. The Indian government has prioritised this industry and set an ambitious goal of increasing its share of global exports to 7%.
Engineering goods were the major contributors to export growth, increasing by over 50% and predicted to reach $110 billion by the end of FY2022. Exports of electronic items increased by 42.8 percent in the first 11 months of the fiscal year, while exports of gems and jewellery increased by 57.3 percent, buoyed by a surge in gold prices.
Petroleum product exports increased by 146.7 percent, owing to a sustained rise in crude oil prices. Organic and inorganic chemicals, readymade clothes, meat and dairy products, and marine items were among the other products that saw a significant rise in exports.