New Delhi: Relief measures provided by the Government has significantly benefited the exporters to resume a normal exports growth trajectory and we project USD 545 billion exports with a double digit exports growth rate of 12% in 2021-22, said Mr. Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, in a press statement issued here today
The exports in the most difficult year of pandemic Covid-19 are seen consolidating at around USD 487 billion (merchandise & services) with a decline of (-) 8.8% form the level of USD 534 billion achieved in 2019-20, said Mr. Aggarwal
The merchandise exports in 2020-21 are seen consolidating at around USD 283 billion with a decline of around (-) 9.5% from the level of USD 313 billion achieved in 2019-20 whereas services exports are projected at USD 205 billion with a decline of (-) 7.2% from the level of USD 221 billion achieved in 2020-21, said Mr. Aggarwal.
The total loss to exports in the pandemic Covid-19 impacted year is USD 47 billion in the merchandise and services exports with a deceleration of (-) 8.8%, he said.
India’s exports faced a challenging time on account of subdued global economic outlook, disrupted supply chains and overall depressive demand scenario in the international markets, said Mr. Sanjay Aggarwal.
Now the worst is behind us and we are optimistic and projecting a exports growth of 12% in 2021-22 with an increase of USD 58 billion from USD 487 billion in 2020-21 to USD 545 in 2021-22, said Mr. Aggarwal
The merchandise exports are projected at USD 320 billion in 2021-22 with a growth rate of 13% from the level of USD 283 billion in 2020-21 and services exports are projected at around USD 225 billion with a growth rate of 9.7% from the level of USD 205 billion in 2020-21, said Mr. Aggarwal.
On the back of plethora of economic reforms undertaken by the Government during the last one year to mitigate the daunting impact of COVID-19 on trade & industry and to boost the competitiveness of our exporters, India’s exports (merchandise & services) are expected to increase in the double digits in next financial year 2021-22, said Mr. Aggarwal
India’s exports (Merchandise & Services)
Source: PHD Research Bureau; PHDCCI compiled from Ministry of Commerce and Industry & RBI.
* Figures are projections by PHD Research Bureau; PHDCCI.
During the recent years, the Government has undertaken a series of economic and business reforms with a thrust to promote trade and ease of doing business in the country. There has been a major push for trade facilitation with continuous efforts to improve trade infrastructure, single window clearances, reduction in the number of documents required for clearances, digitalization of various application processes, simplification of various export incentive schemes, among others, said Mr. Sanjay Aggarwal.
The relief measures announced by the Government including extension of Interest Equalization Scheme on pre & post shipment rupee export credit, launch of Common Digital Platform for Certificate of Origin, setting up of Control Room to monitor the issues of trade and industry, among others have facilitated the exporters to fulfill their export orders and to recover to a normal growth trajectory, said Mr. Aggarwal.
Going ahead, with continued emphasis aimed at facilitation and enhancement of competitiveness of our exporters, there exists much more potential to enhance India’s export performance to a significantly higher growth trajectory amid gradual recovery in the global economic scenario, said Mr. Sanjay Aggarwal.
Furthermore, the announcement of various banking and financial sector relief measures to support domestic industry, especially Micro, Small & Medium Enterprises (MSMEs), which constitute a major share in exports along with the recent Cabinet approval of Production-Linked Incentive (PLI Scheme) to key Sectors including Electronic/Technology Products, Automobiles & Auto Components, Telecom & Networking Products, Textile Products, Food Products, among others would go a long way to re-energies India’s exports growth trajectory and increase its presence in the world economic system, said Mr. Sanjay Aggarwal.
Going ahead, the strategy to achieve higher growth trajectory of exports in goods and services by FY2025 must focus on more prospective products to scale up the export volumes. Focus must be on strengthening the export growth momentum towards emerging and developing economies through greater access in the Asian and African economies, said Mr. Sanjay Aggarwal.
Structural improvements in export and logistics infrastructure, developing the supply chains and value chains of Micro, Small & Medium Enterprises (MSMEs) and enhancing the overall ease of doing exports would go a long way to push growth trajectory of exports to the next level, said Mr. Aggarwal.
Efforts should be made to improve the country’s competitiveness in areas such as the agro and food processing products, textiles and garments, gems & jewellery, drugs & pharmaceuticals, vehicles, parts & accessories of vehicles, petroleum oils, sports goods, furniture, information technology & information technology enabled services (IT &ITeS), accounting and finance services, audio visual services, legal services, communication services, fashion and lifestyle, among others, said Mr. Sanjay Aggarwal.