- April 4, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Section: External Sector
India’s exports of goods surged to a record high of $417.8 billion in FY22.
Exports for the year were 43.2 percent higher than shipments of $291.8 billion in FY21 and 26.6 percent higher than exports of $330.1 billion in FY19, which saw India’s previous record high.
Causes:– both value and volume of exports increased due to Covid pandemic, supply chain diversification initiatives, Ukraine crisis etc..
- Majority rise in volume of export-Higher shipments of petroleum products, engineering goods, gems and jewellery and textile products, according to the data released by the Commerce Ministry.
- Significant jump in exports to developed countries such as the US, the Netherlands, Hong Kong, Singapore, the UK, Belgium and Germany.
- Higher global commodity prices have boosted the value of India’s exports.
FY22 is also expected to mark record high imports and trade deficit for India, with imports for the first 11 months of the fiscal having grown by 59.2 per cent to $550.1 billion and almost doubling India’s trade deficit to $176.1 billion in the period.
India’s export basket:
Export Commodities (% share in total export)
|Pearl, Precious and Semi precious Stones||6.6||6.2||6.8|
|Iron and Steel||3.0||4.2||6.0|
|Drug Formulations, Biologicals||5.1||6.5||4.7|
|Gold and Other precious metal Jewellery||4.4||2.3||2.8|
Note- In 2020-21 top 5th good to be exported was electric machinery and equipment with total share in export at 2.8% and top 6th Organic chemicals with a share of 2.6%
Agricultural Export Products($US Billion)
|Rice (other than Basmati)||4.8||3.9|
The USA remained the top export destination, followed by UAE and China. Belgium has replaced Malaysia and entered into the top 10 leading export destinations of India
Export Destinations of India in 2021-22 (Apr-Nov) by % share
India has diversified its export destinations in the last 25 years, yet more than 40% India’s exports are still accounted for by only 7 countries.