Piyush Goyel, India’s Commerce and Industry Minister, stated on Tuesday that the country’s overall Exports have touched a record high of 750 billion dollars. He announced the milestone during a speech at the ASSOCHAM Annual Session 2023 on March 28, noting that this achievement has come in the country’s 75th year of independence. The impressive figure reflects a significant increase from the $500 billion reported in 2020-2021. Despite challenging economic conditions around the world, including inflation and war in Ukraine.
Healthy Growth in Merchandise and Service Sectors
Minister Goyal highlighted the healthy growth in both the merchandise and service sectors. He pointed out that the world is in recession, inflation is at an all-time high, and interest rates are shooting up. There is also a sense of doom and gloom in the rest of the world. In contrast, India’s performance fills the country with pride.
Goyal also discussed the two key free trade agreements signed last year with the United Arab Emirates (UAE) and Australia. He noted that India’s trade agreements with these countries have been welcomed by industry across the three countries, and the extensive stakeholder consultations have resulted in finding the right equitable balance appreciated by all sections. The UAE agreement provides India with preferential market access on over 97 percent of its tariff lines, which account for 99 percent of Indian exports to the UAE in value terms.
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Opportunities for the Economy
The minister also revealed that several Free Trade Agreements (FTAs) were under different stages of discussion to further expand trade and open up game-changing opportunities for the Indian economy.
Dip in Exports and Imports
Despite the overall achievement, India’s exports and imports declined in February 2023 for the third consecutive month. Exports fell by 8.8 percent to $33.88 billion compared to $37.15 billion in the same month the previous year. Similarly, imports also fell by 8.21 percent to $51.31 billion from $55.9 billion recorded in the corresponding month in 2022. As a result, the country’s trade deficit in February stood at $17.43 billion.
Experts have expressed concern over the slowdown in exports due to recession concerns and weak global demand. However, the impressive overall export figure indicates that India’s economy is resilient and can withstand challenging times.
India crossing the $750 billion mark in overall exports is a truly remarkable feat. This shows the country’s economic resilience amidst global challenges. Minister Goyal’s announcement comes on the 75th anniversary of India’s independence. It definitely added to the pride of the Indian people. However, given the drop in exports and imports in February, the country must remain vigilant and continue to work on expanding trade agreements and exploring new economic opportunities.
