India’s merchandise exports hit a record $420 billion in FY22: Ghosh

Kolkata, Oct 10 (UNI) India’s merchandise exports hit a record $420 billion in FY22, according to Dr Soumya Kanti Ghosh, Group Chief Economic Advisor, State Bank of India .

In FY23, exports so far recorded $229 billion in the first half of FY23 and at this rate, India’s exports are poised to exceed $420 billion in during the current fiscal year. Various factors such as exports of finished or intermediate products, the push of the production-linked incentive program and multi-year high commodity and food prices are contributing to this export growth, Ghosh said.

For example, the Indian government’s consistent and concerted efforts to introduce reforms aimed at boosting agricultural exports have been very successful and are now yielding results. India’s agricultural exports have grown remarkably despite COVID-19 and crossed the $50 billion mark in FY22. Efforts are being made to expand India’s agricultural export basket. India and promote the export of unique products

in India.

The current foreign trade policy, which came into effect on April 1, 2015, lasted 5 years and was extended for 6 months until March 31, 2023. The implementation of the new foreign trade policy has been postponed due to volatile and prevailing global economic conditions. geopolitical situation.

It is expected that the new foreign trade policy will provide the rates and terms of the WTO-compliant RoDTEP scheme, launched on January 1, 2020 to replace the MEIS. It is also expected that the new FTP will add new chapters/sections on easy access to credit, R&D service exports, e-commerce exports, infrastructure upgrade and digitization through the District Export Hub Scheme .

The Government of India is implementing the Trade Infrastructure for Export (TIES) Program in FY 2018 with the aim of helping central and state government agencies create infrastructure for export growth.

The Indian government is on track to target massive export growth with the launch of a new logistics policy and the One District One Product – District Export Hub (ODOP-DEH) initiative, Ghosh added.

The new logistics policy aims to reduce India’s logistics costs, improve the Logistics Performance Index ranking to be among the top 25 countries by 2030 and create a data-driven decision support mechanism , Ghosh said.

Compared to the disbursement of only about 200 crores in 17 states under the TEIS program for commercial infrastructure projects from March 2019 to July 2022, ODOP-DEH looks more promising with the massive injection of funds planned for some districts in phase 1 for strategic interventions to boost exports.

ODOP– DEH is a transformational step towards realizing a district’s true potential, fueling economic growth, generating employment and rural entrepreneurship, aiming to foster balanced regional development in all districts of the country enabling socio-economic growth. holistic economy in all regions, enabling MSMEs, farmers and small industries to benefit from export opportunities in foreign markets. Interventions under the ODOP-DEH are proposed in the form of institutional and strategic measures.

Under the ODOP-DEH, products/services with export potential have been identified in 733 districts across the country, including agricultural clusters and toys and GI products in these districts. Toy manufacturing clusters have been identified in 12 Districts.

With the introduction of ODOP-DEH in FY20, exports saw a dramatic increase in nearly every state. Exports from Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Sikkim, Telangana, Uttar Pradesh and West Bengal have more than tripled since the introduction of the ODOP-DEH initiative. These states include the top 10 export-ready states, with the exception of Tamil Nadu, whose exports more than doubled.

However, so far the services identified for export promotion are not significant and relate only to tourism, IT/ITES. India’s economy is service-based and with around 55% of GDP coming from the service sector, service exports can be given more prominence under the ODOP-DEH. ODOP-DEH’s focus on GI products is good, but it can also focus more on capitalizing raw materials and intermediate goods for integration into global value chains.

India should capitalize on the “China+1” strategy, while avoiding protectionism and corrections of inverted tariff structures to boost the export competitiveness of the Indian economy, he said.

In addition, district-level export indicator progress results are to be published on a monthly/quarterly basis against the September 2020 baseline.