The Modi government has achieved success in this fiscal year, compared to the previous year, India has been able to increase exports by reducing imports from China, what is the key point of this year.
TRADE PERFORMANCE: MAJOR HIGHLIGHTS
Merchandise Exports Achieve New Peak
- Through secular growth over the last three financial years, following the major downturn in the face of the global slowdown, merchandise exports for the year 2018-19 are estimated at USD 331.02 Billion, the highest ever, surpassing the earlier peak of USD 314.4 Billion achieved in 2013-14. This has been achieved in a challenging global environment.
- The following growth drivers have shaped merchandise exports growth:
- Engineering Goods rose from USD 78,695.69 million in 2017-18 to USD 83,704.54 million in 2018-19, a growth of 6.36%.
- Petroleum Products rose from USD 37,465.10 million in 2017-18 to USD 47,954.54 million in 2018-19, a growth of 28%.
- Organic & Inorganic Chemicals rose from USD 18,508.48 million in 2017-18 to USD 22,573.87 million in 2018-19, a growth of 21.97%.
- Drugs & Pharmaceuticals rose from USD 17,282.81 million in 2017-18 to USD 19,188.46 million in 2018-19, a growth of 11.03%.
- Cotton Yarn/Fabs./made-ups, Handloom Products etc., rose from USD 10,260.38 million to USD 11,206.44 million in 2018-19, a growth of 9.22%.
- Electronic Goods rose from USD 6,393.12 in 2017-18 to USD 8,880.96 million in 2018-19, a growth of 38.91%.
- Plastic & Linoleum rose from USD 6,851.12 in 2017-18 to USD 8,609.08 million in 2018-19, a growth of 25.66%.
Total Exports (Services and Goods) Surpass Half Trillion USD for the First Time
- Our total exports (goods and services combined) have been growing on a secular basis since 2016-17 for the last three years and have surpassed the USD Half Trillion (500 Billion) mark in 2018-19, for the first time. The overall estimated exports (merchandise and services) have reached a new peak of USD 535.4 billion this year, attaining a growth of 7.97%.
India’s Trade Deficit with China Declined by about USD 10 Billion
- Through concerted efforts India’s trade deficit with China has come down by about USD 10 billion this year, a decline of 15.2% from USD 63 billion in 2017-18 to USD 53.4 billion in 2018-19. This was the result of rising exports to China which grew to USD 16.91 billion this year from $13.33 billion last year, while imports declined to USD 70.3 billion this year from USD 76.4 billion last year.
- The following are some of the areas showing significant export growth:
- Organic and inorganic chemicals (Growth 52.57%)
- Petroleum products (Growth 89.88%)
- Cotton Yarn/Fabs./made-ups, Handloom Products etc (Growth 44.91%)
- Plastic and Linoleum (Growth 100.07%)
- Mica, coal and other ores, minerals including process (Growth 7.88%)
- Imports of the following commodities from China saw a decline:
- Electronic Goods (Declined by 25.87%)
- Transport Equipment (Declined by 23.18%)
- Textile yarn fabric/made-up articles (Declined by 6.04%)
- Wood and wood products (Declined by 12.35%)