Boom: How US economic recovery helped India’s $400 bn exports target?
Virendra Pandit
New Delhi: Unlike some of its neighbors like Pakistan and Sri Lanka, facing near-bankruptcy, India has remarkably bounced back from the Covid-19 inflicted recession and, for the first time, earned export revenues of nearly USD 410 billion in 2011-22—a whopping USD 46 million every hour in the outgoing financial year set to close six days from now on March 31, 2022.
A lion’s share of this export went to the US, whose own economy recovered faster than in 2020 after the waning of the pandemic-related restrictions and infections.
For example, according to the preliminary data compiled by the Union Ministry of Commerce, India exported merchandise goods worth USD 73 billion to the US from April 1, 2021, to March 21, 2022 — up 47 percent compared to FY21.
Thus, the US’ share of exports, compared to overall exports, was 18.2 percent. America is also India’s largest trading partner and export destination.
Also, during the first 11 months of the fiscal year (April 2021 to February 2022), outbound shipments to China, valued at nearly USD 20 billion, grew by 7 percent.
America and China, together, accounted for USD 93 billion, out of USD 410 billion, of Indian exports.
On Wednesday, Prime Minister Narendra Modi said this is a key milestone in the country’s journey for an Aatmanirbhar Bharat (Self-Reliant India).
The export target for the outgoing fiscal was achieved on March 22, nine days ahead of its schedule, he tweeted.
“India set an ambitious target of $400 billion of goods exports and achieved it for the first time. I congratulate our farmers, weavers, MSMEs (micro, small and medium enterprises), manufacturers, and exporters for this success,” the PM said.
Modi also acknowledged how this was achieved by actively engaging exports promotion councils, the government’s approach at states and districts levels, closer engagements with exporters, and faster resolution of issues.
The Federation of Indian Export Organisations said, “It is a historic day for India as it has achieved the record-breaking USD 400 billion goods exports milestone under the able and decisive leadership of Hon’ble PM Shri @NarendraModi Ji.”
Union Minister for Commerce and Industry Piyush Goyal tweeted that the Make in India lion is roaring aloud across the world. The Union Ministry for Textiles tweeted, “Atmanirbhar Bharat displays record-breaking performance. #LocalGoesGlobal.”
India’s merchandise export in April 2021-February 2022 was USD 374.05 billion, an increase of 45.80 percent over USD 256.55 billion in the April 2020-February 2021 period, and an increase of 28.16 percent over USD 291.87 billion in the same period in FY20.
The country’s merchandise import in the April 2021-February 2022 period was USD 550.12 billion, an increase of 59.21 percent over USD 345.54 billion in the April 2020-February 2021 period and an increase of 24.11 percent over USD 443.24 billion in the same period in FY20.
The trade deficit during the April 2021-February 2022 period was USD 176.07 billion.
The cumulative value of non-petroleum exports in the April 2021-February 2022 period was USD 319.09 billion, an increase of 36.16 percent over USD 234.36 billion (April 2020-February 2021), and an increase of 26.07 percent over USD 253.10 billion in the same period in FY20.
The cumulative value of non-petroleum imports in the April 2021-February 2022 period was USD 408.63 billion, showing an increase of 49.61 percent compared to non-oil imports of USD 273.12 billion in the April 2020-February 2021 period and an increase of 26.61 percent compared to non-oil imports of USD 322.74 billion in the same period in FY20.
