For a country as large as India that possesses an expansive domestic market, export-oriented policy changes are accelerating economic growth. After two years of languishing economic activities amid the Covid-19 pandemic, India is now riding on a resurging growth. As per the government’s preliminary export data released on Monday, India's merchandise exports in June rose by 16.8% year-on-year to $37.9 billion while the trade deficit ballooned to a record $25.6 billion.
The government’s notification stated, “India has achieved a monthly value of merchandise export in June 2022 amounting $37.9 billion, an increase of 16.7% over $32.4 billion in June 2021."
It added that India’s merchandise imports in April-June 2022-23 were $187 billion with an increase of 47.3% over $126.9 billion in April-June 2021-22. Marking a substantial growth in the first quarter of 2022-23, India’s merchandise exports jumped 22.2% to $116.7 billion.
India's textiles export highest ever in the financial year 2022
In March 2022, India recorded its highest-ever textiles and apparel exports in the financial year 2021-22 at $44.4 billion. The tally includes which also handicraft exports, indicating a substantial increase of 41% and 26% over corresponding figures in FY21 and FY20, respectively.
The textile ministry stated that the USA was the top export destination for the country's textiles and apparel shipments accounting for 27% share, followed by the European Union at 18%, Bangladesh at 12% and UAE at 6%.
What are the major challenges that Indian exporters face?
Over the years the government has made huge strides in facilitating and enabling businesses but there are still a few gaps. Indian exporters are reeling under the constant stress of rising raw-material costs, higher rates of interest on export finance, lack of technology, global unreliability and infrastructure bottlenecks. Interest payments alone constitute nearly 15% of the cost of production in India. Along with this, infrastructure deficiencies such as energy shortages, inadequate and unreliable transport facilities have so far hindered the growth of exports.
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