EXIM performance in 2021 – UPSC GS3

Exports in 2021:
  • India’s exports in financial year 2021-22 has crossed $400 billion.
  • This is highest ever and previous record was $330 billion in 2018-19.
  • India’s annual exports have been boosted by the increase in shipments of merchandise; engineering products; apparel and garments; gems and jewellery; and petroleum products.
  • The agriculture sector has also achieved its highest-ever export during 2021-22 due to the increase in the exports of rice, marine products, wheat, spices and sugar.
  • The export demand has risen due to: 
    • worldwide increase in trade and
    • Outbreaks of Covid-19 infections in key competitors such as Vietnam, leading to disruptions in supply.
Government initiatives:
  • The government has provided a conducive environment and infrastructure for the industry and exporters to enhance their export performance.
  • The successful implementation of RoDTEP and RoSCTL schemes despite the challenges posed by the pandemic also boosted the sector.
  • The extension of the Interest Equalisation Scheme to exporters benefited a large number of MSME exporters.
  • The government has undertaken various efforts to enhance domestic capacity and for deepening integration in the Global Value Chains.
  • PLI schemes for 13 major sectors of manufacturing have been announced starting from FY 2021-22.
  • Efforts also have been made to set up a strong backward and forward linkage, starting from the district level to the overseas market with the help of multiple stakeholders.
Imports in 2021:
  • India’s merchandise imports have grown even faster than exports.
  • Imports has shown a 68.9% year-on-year increase.
  • Key imports for India during this fiscal include petroleum and petroleum products, gold and electronic goods.
  • But the higher imports of machinery, electronic goods, vegetable oil, coal, and chemicals were key contributors to the sharp uptick in imports.
Trade Deficit in 2021:
  • The rise in imports has led to an increase in the trade deficit.
  • India’s services sector has a trade surplus which is estimated to be about $74.4 billion.
How is India planning to overcome the trade deficit?
  • India is currently in the process of negotiating free trade agreements (FTAs) with the UK, UAE, Australia, Israel and the EU.
  • India is looking for reciprocal access, good market conditions, and fair play in trade in both goods and services.

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