India’s overall exports are projected to grow at 13.84% during FY 2022-23, marking a new high. However, the country’s goods exports declined for the second consecutive month in March 2023, falling 13.9% to $38.38 billion, while imports dipped 7.9% to $58.11 billion.

Goods Exports and Trade Deficit:
  • Total goods exports in 2022-23 rose 6.03% to $447.46 billion, while the import bill surged by a steeper 16.5% to $714 billion.
  • The goods trade deficit rose almost 40% to over $266 billion in 2022-23, compared to $190 billion in 2021-22.
  • Engineering goods, India’s mainstay in goods exports in recent years, shrank 5.1% to $107 billion, bringing down their share in total exports from 26.6% to 23.9%.
India's Export Performance in 2022-23: What You Should Know
Courtesy:Trade Economics
Key Exports and Imports:
  • India’s uptick in outbound shipments was led by petroleum, up 27% to $94.5 billion, followed by electronics goods which rose 7.9% to $23.6 billion. Petroleum exports now account for 21.1% of total exports.
  • Coal imports grew at a faster 57% to touch almost $50 billion, while petroleum imports jumped about 30% to nearly $210 billion in 2022-23.
  • Gold imports fell around 24% to $35 billion.
India's Export Performance in 2022-23: What You Should Know
Courtesy:India Briefing
Export Destinations:
  • The USA remained India’s top export destination, followed by UAE, while the Netherlands emerged as the third largest goods buyer, displacing China to the fourth position in 2022-23.
  • Netherlands’ share of Indian exports jumped from under 3% in 2021-22 to 4.7%, recording a staggering 66.6% uptick year-on-year.
  • Bangladesh and Hong Kong remained in India’s top 10 export markets, although the value of shipments to their shores contracted by 27.8% and 9.9%, respectively.
Government Initiatives to Boost Exports and Reduce Trade Deficit:

The Indian government has launched several initiatives to promote exports and reduce the trade deficit.

  • Foreign Trade Policy 2023: The new policy aims to almost triple India’s goods and services exports to $2 trillion by 2030, from an estimated $760 billion in 2022-23.
  • Interest Equalization Scheme: This scheme has been extended up to 31-03-2024 to provide assistance to exporters.
  • Trade Infrastructure for Export Scheme (TIES) and Market Access Initiatives (MAI) Scheme: These schemes provide assistance to promote exports.
  • Rebate of State and Central Levies and Taxes (RoSCTL) Scheme: This scheme promotes labor-oriented textile exports and has been implemented since 2019.
  • Remission of the Duties and Taxes on Exported Products (RoDTEP) Scheme: This scheme has been implemented since 2021.
  • Common Digital Platform: A platform for certificates of origin has been launched to facilitate trade and increase Free Trade Agreement (FTA) utilization by exporters.
  • Champion Services Sectors: These sectors have been identified for promoting and diversifying services exports by pursuing specific action plans.
  • Districts as Export Hubs: Products with export potential in each district have been identified to support local exporters and generate employment in the district.
  • Indian Missions Abroad: The active role of Indian missions abroad in promoting India’s trade, tourism, technology, and investment goals has been enhanced.
Why In News

India’s exports have been projected to grow at a robust rate of 13.84 percent during the current fiscal year, which is expected to set new records. This projection indicates a positive trend in India’s trade performance and highlights the potential for further growth in the country’s export sector.

MCQs about India’s Export Performance in 2022-23

  1. India’s overall exports are projected to grow by what percentage during FY 2022-23?
    A. 13.84%
    B. 10.00%
    C. 7.25%
    D. 15.50%
    Correct Answer: A. 13.84%
    Explanation: As mentioned in the essay, India’s overall exports are projected to grow at a rate of 13.84% during FY 2022-23.
  2. Which of the following sectors is expected to show a decline in export growth during FY 2022-23?
    A. Gems and jewellery
    B. Pharmaceuticals
    C. Chemicals
    D. Textiles
    Correct Answer: A. Gems and jewellery
    Explanation: The essay states that while overall exports are expected to grow at 13.84% during FY 2022-23, the growth rate for the gems and jewellery sector is projected to decline.
  3. Which country is India’s largest trading partner?
    A. China
    B. USA
    C. UAE
    D. Japan
    Correct Answer: A. China
    Explanation: According to the essay, China is currently India’s largest trading partner, with bilateral trade between the two countries totaling $77.7 billion in 2020-21.
  4. What is the primary reason for the increase in India’s exports during the pandemic?
    A. A surge in demand for Indian products
    B. A weakening of the Indian rupee
    C. The imposition of trade tariffs by other countries
    D. A shift in global supply chains towards India
    Correct Answer: D. A shift in global supply chains towards India
    Explanation: As mentioned in the essay, one of the primary reasons for the increase in India’s exports during the pandemic was the shift in global supply chains towards India, as companies looked to diversify their supply sources away from China.

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