“I am delighted to share with you the outstanding export performance for 2022-23, with India’s overall exports scaling new heights at USD 770 billion, registering 14 per cent growth over the previous year and all-time high record growing from USD 500 billion in 2020-21 to USD 676 billion in 2021-22,” the Commerce Minister Piyush Goyal told reporters in Rome.
However, goods exports in March 2023 slipped to $38.38 billion compared to $44.57 billion during the previous year, registering a 13 per cent fall. At the same time, goods imports rose over 16 per cent to touch $714 billion, widening the goods trade deficit to the highest ever mark of $267 billion against the previous year’s $191 billion.
The merchandise trade deficit, which is the gap between exports and imports, increased by over 39 per cent in 2022-23 to record $266.78 billion, as compared to $191 billion in 2021-22. Merchandise imports increased by 16.51 per cent to $714.24 billion in 2022-23, while merchandise exports rose by 6.03 per cent to $447.46 billion.
Overall trade deficit, however, stood at $122 billion in 2022-23, as compared to $83.53 billion in the previous year
In a year of uncertainties worldwide, India exported a record $447 billion worth of goods in FY23, up about 6 per cent from the previous year, commerce ministry data showed.
India’s services exports too have increased by 27.16 per cent to USD 323 billion in 2022-23 as compared to USD 254 billion in 2021-22.
The Commerce minister showed his confidence in the Indian economy by mentioning that India’s GST collections are at high, inflation is within BRI’s comfort, foreign exchange reserves are strong and India is the fastest growing large economy.
As per the data, 17 of the 30 major export sectors grew during the last financial year. The percentage increase in volume was higher than the growth in export value in 17 principal commodities in April-February FY23, which suggests price decline.
India recently came out with a “dynamic and responsive” foreign trade policy aiming to push rupee trade, increase outward shipments to USD 2 trillion by 2030, and promote e-commerce exports, amid global uncertainties.
The approach of the Foreign Trade Policy (FTP) 2023 is to move from an ‘incentive to remission’ based regime, encourage collaboration between exporters, states, districts and Indian Missions, reduce transaction cost, and develop more export hubs.
Unlike the practice of 5-year FTPs, this time the government has come out with a “dynamic and responsive” trade policy without any end date, and will be updated as per the emerging global scenario, according to the policy.
While the IT and ITES sectors account for a bulk of services exports, the Government is making efforts to expand the list to include non-IT services.
During 2022-23, oil imports rose 29.5 per cent to $209.57 billion, reflecting the impact of high crude oil prices in the aftermath of the Russia-Ukraine war. Among countries, China’s share in India’s import basket declined.
However, China remained the top import destination with 13.79 per cent share, followed by 7.45 per cent from UAE and 7.03 per cent from the US.
India is looking to reduce non-essential imports through quality control orders and by incentivising Production Linked Incentive schemes, an official said. Meanwhile, imports from Russia surged by 369.44 per cent to $46.33 billion in 2022-23.
The ministry also shared the status of India’s trade negotiations with other countries.
It said that the seventh round of India-Canada CEPA negotiations took place in Ottawa from April 3 to 6 and another round of discussions is likely. The Indian delegation also participated in the second round of IPEF negotiations in Bali from March 13 to March 19, it added.
The ministry noted that four rounds of negotiations have been completed in 21 policy areas for India EU FTA and the fifth round of talks is likely to be held in June in Delhi, followed by meetings in August.
Meanwhile, India-UK FTA’s round nine of negotiations is scheduled from April 24 to April 28.
