THE FIRST TIME EVER

India Crosses $400 billion-Mark Exports 

     India achieved its ambitious target of crossing $400 billion exports on Wednesday, with 9 days remaining in the current financial year 2021-22. With this, India has achieved a key milestone in its journey towards becoming 'aatmanirbhar'. This is the first time ever that exports have crossed the $400 billion-mark. The previous best was $331.02 billion that was achieved in 2018-19. India added around $25.19 billion worth exports in the month of March so far and may finish at about $410 billion by the end of this fiscal.

          The key export sectors, which contributed to record healthy growth include petroleum products, engineering, gems and jewellery, chemicals and pharmaceuticals. The top five export destinations are the US, the UAE, China, Bangladesh, and the Netherlands. The government approach with closer interaction with states and districts; engagement with exporters and faster resolution of their issues; and actively engaging with different export promotion councils, industry associations and other stakeholders have helped in reaching this milestone. 

            Officials said a preliminary analysis showed that while commodity price hike had contributed to the rise 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. Experts noted that another key factor driving the surge in exports is the pent-up global demand that was unmet during major waves of the Covid19 pandemic. Expansionary monetary policy by developed economies in response to the economic impact of the pandemic has also boosted demand for Indian export. 

            According to UNCTAD estimates based on national trade statistics, the positive trend for international trade in 2021 (calendar year) was largely the result of increases in commodity prices, subsiding pandemic restrictions and a strong recovery in demand due to economic stimulus packages. "As these trends are likely to abate, international trade trends are expected to normalize during 2022," UNCTAD noted in a February 2022update.

             While topping $400 billion, exports have registered a 37% increase compared to $292 billion in the previous fiscal and 21% over the previous record high of exports of $330 billion set in FY2019, prior to the pandemic. India's imports during the period have also surged to a record high level of over $589 billion during the fiscal, taking India's trade deficit to a record $188.2billion.

                Market the ‘’first time ever’’ development, PM Modi congratulated the manufacturers, farmers and weavers for achieving this target. It is also a good means by which a country can bring itself out of the recession phase. Exporting to countries with a favourable economic climate helps in increasing the GDP levels as well as helps in reducing unemployment. Besides, it also plays a key role in strengthening the domestic manufacturing units by scaling up their quality to make India made products compete and stand out against global peers. The Centre said that achievement of $400 billion target shows India's spirit to meet seemingly impossible targets. It depicts the country's resilience, commitment and clearly shows that the world trusts Make in India brands.