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Current Affairs

India records $400 billion exports

Date: 25 March 2022 Tags: Basics of Economics

Issue

India has achieved the target of $400 billion in exports in FY2022, the Prime Minister has announced.

 

Background

The Prime Minister has complimented farmers, MSMEs, weavers, manufacturers and others sections for making it possible.

 

Details

  • The target could be achieved after India recorded a growth of 21 per cent in exports from the previous high of $330 bn in FY19.

  • The major reason for such a growth is the growth in demand that was not met during major waves of the Covid-19 pandemic.

  • Indian exports were also boosted due to the expansionary economic policies undertaken by the countries to negate the economic impact of the pandemic.

  • Commodities such as auto components, motor vehicles, cereal preparations, buffalo meat, rice, carpets, processed fruits and juice boosted export volume.

  • Exports to key trading partners like UAE increased by 65 per cent during the fiscal and exports to the US increased by 46 per cent.

 

Key drivers of growth

  • Engineering goods have witnessed a growth of 49.7 per cent in the first 11 months of the fiscal.

  • Electronics goods exports have grown by 42.8 per cent

  • Gems and jewellery exports have grown by 57.3 per cent

  • Export of petroleum products have grown by 147.6 per cent 

 

Rise in imports

  • India’s imports have also grown during the current fiscal to record $550 billion in the first 11 months.

  • This was due to the sharp growth in imports of crude oil, coal, gold, electronics and chemicals.

  • India’s import bills have been inflated due to rising prices of crude oil and coal in international market.