India’s exports topped $400 billion in FY22, an all-time high for the country and comfortably higher than the five-year average of $300 billion prior to the Covid-19 pandemic. Exports totaled $417 billion, or around $48 million each year, according to the government. Following two years of muted COVID-19, the global economy is back on the growth track.
Data from the Ministry of Commerce and Industry for the fiscal year 2021-22 showed the following sectors coming out ahead of the others in India’s exports story:
Engineering goods registered a 50 per cent growth in exports, at $101 bn in FY22. This is mainly due to the benefits that the sector enjoys due to various trade agreements India has with other countries, a report by The Economic Times explained. It is expected to continue its rise in steel, auto components and medical devices and India’s push for make in India.
Petroleum products contributed in a major way to India’s exports, with crude oil prices rising due to the pandemic and made worse by geopolitical tensions due to the Ukraine war. India exports $55.5 bn worth petroleum products, a whopping rise of 150% over the last fiscal year.
Gems and jewellery made up $35.3 billion of India’s exports in FY22. With the reduction of import duty on cut and polished diamonds in this year’s budget, this is only going to rise. The Emergency Credit Line Guarantee Scheme (ECLGS) launched by the government as a response to Covid-19 for MSMEs will also help business in this sector. Ninety per cent of gems and jewellery
Agriculture exports were buoyed by the government’s push to meet global demand for food amid the pandemic. India exports rice worth $9.65 bn, the highest among agricultural commodities. Wheat exports also saw a 288 per cent rise, while dairy products saw a 96 per cent rise. With the Ukraine war, wheat exports are likely to rise more in the estimates for FY23.
