India, for the first time, has met the government’s annual export target since 2014. The country crossed the crucial threshold of $400-billion annual merchandise export target.
“India set an ambitious goods export target of $400 billion and achieved it for the first time. I congratulate our farmers, weavers, MSMEs, manufacturers and exporters for this success,” Prime Minister Narendra Modi tweeted.
Pointing out that the target was achieved nine days ahead of schedule, Modi tweeted that this translated to $33 billion worth of exports every month, $1 billion of exports every day, and $ 46 million worth of exports every hour of the year.
What went right?
– Oil Prices
The impact of increasing commodity prices on India’s exports is evident for India’s single largest export item (processed petroleum), which alone has a 15 percent share in the country’s overall exports.
– Glittering Gems
Gems and jewellery were the second-largest export category for India. They saw a major rise in earnings. Overall, exports in this sector rose to an unprecedented $32 billion, representing almost 10 percent of India’s exports.
– Industrial, inputs and fetch more
The export of organic chemicals rose to $18 billion in April-January FY22, while plastic exports increased up to $7.5 billion and rubber exports to $3.7 billion.
– Agri exports
Exports of farm produce, both processed and unprocessed, rose to $38.6 billion in April-January 2021-22, up from $31.16 billion. The government anticipates total exports from the sector to rise to $43 billion by March 2022. Data showed that while the global commodity supercycle played a part in raising the prices of non-food products, such as tea, cotton, and rubber, prices of food products have remained stable.