India's Services exports in 2021-22 touch all-time high of $250 billion
India's overall exports (merchandise and services) also touched an all-time high of $669.65 billion in FY22
For the first time, India has achieved the targeted $250 billion in service exports during the financial year FY22. The country's services exports have registered a growth of 21.31% from the previous fiscal year, the Ministry of Commerce & Industry said on Thursday.
The ministry's data showed that in March 2022, the estimated value of Services exports is $22.52 Billion, exhibiting a positive growth of 8.31% vis-a-vis March 2021.
Overall, India's exports (merchandise and services) touched an all-time high of $669.65 billion in FY22 rising by 34.50% over the same period last year, said the Ministry.
During March alone, India’s exports grew by 15.51% to $64.75 billion over the same period last year. Merchandise exports for March 2022 rose to $42.22 billion, higher by 19.76% on a year-on-year basis, official data showed.
"Non-petroleum and non-gems & jewellery exports in March 2022 were $30.67 billion, registering a positive growth of 9.4% over non-petroleum and non-gems & jewellery exports of $28.03 billion in March 2021 and a positive growth of 80.90% over non-petroleum and non-gems & jewellery exports of $16.95 billion in March 2020," the Union Ministry of Commerce & Industry said.
Similarly, India's merchandise imports in March 2022 increased by 24.21% over last year to $60.74 billion from $48.90 billion.
Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports were $37.35 billion in March 2022 with a positive growth of 35.44% over non-petroleum, non-gems & jewellery imports of $27.58 billion in March 2021 and a positive growth of 99.77% over non-petroleum, non-gems and jewellery imports of $18.70 billion in March 2020.
The trade deficit widened by 35.72% on a year-on-year basis to $18.51 billion in March 2022 from $13.64 billion in the like period of 2021.
Both non-oil exports and non-oil non-gold imports recorded their FY2022 high in March 2022. However, the pace of growth of non-oil exports marked an FY2022 low of 8.9% in March 2022, whereas non-oil non-gold imports expanded by a massive 76.1% in YoY terms on a subdued base.
The non-gold trade deficit widened multifold to $17.5 billion in March 2022 from $5.1 billion in March 2021, driven by petroleum products, coal and electronic goods, partly driven by the spike in commodity prices following the Russia-Ukraine conflict.
In terms of the full fiscal year, the data showed that India's FY22 merchandise exports rose to $419.65 billion, higher by 43.81% on a year-on-year basis from $291.81 billion reported for the previous fiscal. Besides, the data showed that FY22 merchandise imports increased by 55.13% over last year to $611.89 billion from $394.44 billion in FY21.
The trade deficit for FY22 widened by 87.32% on a year-on-year basis to $192.24 billion from $102.63 billion in the previous fiscal.
Addressing a press conference in New Delhi, Union Minister of Commerce & Industry Piyush Goyal said India has achieved these exports high despite the slowdown in the economy worldwide due to the Covid-19 pandemic and the recent geopolitical developments in Europe.
“Services sector has achieved the all-time high despite services like Tourism, Aviation, and Hospitality industry being severely affected due to the Covid-19 pandemic," Goyal added.
Further, Goyal said that India has been able to exceed the overall exports target of $650 Billion due to the visionary leadership of Prime Minister Narendra Modi, we turn India into an export focused economy.
Goyal said, "If we have to make India a developed nation, we will have to increase our international engagement. Government has struck vital trade deals with the UAE and Australia towards this end, he said, adding more FTAs and Comprehensive Trade Agreements are in the works with the EU, UK, Canada, and Israel."
"Starting from 'whole of the Government' approach, today 'Whole of the Nation' has joined hands to make India emerge as a trusted partner at the international level, dedicating itself to turn into an economy that provides quality goods and services to the world," he said.
Goyal said that India is now an international aligned economy and the world is our market today, not India.