On Monday, Commerce Minister Piyush Goyal announced that India’s exports in December increased by 37% year on year to USD 37.29 billion, the highest monthly amount ever.
He went on to say that India’s goods exports will surpass USD 400 billion this fiscal year, and that Prime Minister Narendra Modi wanted India to experience not just incremental growth but a quantum leap as well.
Imports increased by 38 percent to USD 59.27 billion in December, owing to a 65.17 percent increase in oil imports to USD 15.9 billion.
Exports increased by 48.85 percent to USD 299.74 billion from April to December 2021-22. Imports climbed by 69.27 percent to USD 443.71 billion during the period, resulting in a USD 143.97 billion trade deficit.
“We are on track to meet our objective of USD 300 billion in the first nine months of 2021-22. This progress is pleasing, but we must strive for more,” Goyal said. He went on to say that the third wave of COVID-19 is affecting industrialised economies such as the United States, Europe, and the Middle East, and that issues with shipping lines are likely.
“We don’t see any imminent supply interruptions or in supply chains because the world has recognised that the effects of this wave are somewhat less destructive, and the western world hasn’t imposed any restrictions on mobility as of yet.” “We haven’t seen any lockdowns issued in any big countries,” Goyal said, adding that the main issue could be transient, such as certain shipping personnel becoming infected with COVID-19, causing short-term difficulties.
“The vast majority of patients are asymptomatic and recover quickly.” He expressed hope that supply lines and supply activity will continue at full speed. According to A Sakthivel, President of the Federation of Indian Export Organisations (FIEO), based on existing trends, India would meet the USD 400 billion merchandise exports target for the fiscal year.
Goyal also stated that the country is on course to export services worth USD 230 billion or more this fiscal year, which would be a new high. “In the first nine months, we saw a USD 179 billion in services exports,” he remarked.