EXIM performance in 2021 – UPSC GS3

India’s exports in financial year 2021-22 has crossed $400 billion.

This is highest ever and previous record was $330 billion in 2018-19.

India’s annual exports have been boosted by the increase in shipments of merchandise; engineering products; apparel and garments; gems and jewellery; and petroleum products.

The agriculture sector has also achieved its highest-ever export during 2021-22 due to the increase in the exports of rice, marine products, wheat, spices and sugar.

The export demand has risen due to: 

The government has provided a conducive environment and infrastructure for the industry and exporters to enhance their export performance.

The successful implementation of RoDTEP and RoSCTL schemes despite the challenges posed by the pandemic also boosted the sector.

The extension of the Interest Equalisation Scheme to exporters benefited a large number of MSME exporters.

The government has undertaken various efforts to enhance domestic capacity and for deepening integration in the Global Value Chains.

PLI schemes for 13 major sectors of manufacturing have been announced starting from FY 2021-22.

Efforts also have been made to set up a strong backward and forward linkage, starting from the district level to the overseas market with the help of multiple stakeholders.

India’s merchandise imports have grown even faster than exports.

Imports has shown a 68.9% year-on-year increase.

Key imports for India during this fiscal include petroleum and petroleum products, gold and electronic goods.

But the higher imports of machinery, electronic goods, vegetable oil, coal, and chemicals were key contributors to the sharp uptick in imports.

The rise in imports has led to an increase in the trade deficit.

India’s services sector has a trade surplus which is estimated to be about $74.4 billion.

India is currently in the process of negotiating free trade agreements (FTAs) with the UK, UAE, Australia, Israel and the EU.

India is looking for reciprocal access, good market conditions, and fair play in trade in both goods and services.