Question: What is the figure that India achieved the highest ever merchandise exports in a quarter 2021-2022?
(a)USD 95 billion
(b)USD 85 billion
(c) USD 115 billion
(d)USD 125 billion
Answer:(a)
Related Facts:
- India recorded the highest-ever exports of $95 billion during April-June, up 85 per cent year-on year (YoY) and 18 per cent higher than the first quarter of the fiscal year 2019-20.
- It is also 16 per cent more than the previous highest Q1 exports of FY19 ($82 billion) and is higher than the earlier peak of exports in Q4FY21 ($90 billion).
- The merchandise exports grew 47 per cent YoY to $32.46 billion in June.
- It was driven by a robust demand of engineering goods, petroleum products, and gems and jewellery in the external markets.
- The government is working towards achieving another all-time high of $400 billion merchandise exports target by the end of the current fiscal year.
- The ministry will work with relevant stakeholders to achieve this target.
- Highest-ever merchandise export in a quarter of $95 billion has been achieved in the April to June in 2021 despite the severity of the second wave of Covid-19.
Causes of such massive growth:
- Sector-specific interventions, involvement of all the stakeholders and functioning of the government as a whole helped in achieving the growth.
Aspiration:
- The commerce minister hopes services exports in the next five years will touch $500 billion.
- The $400-billion target would be achieved by disaggregating the aim product and sector wise.
- The government will try to achieve a target of $500 billion in FY23 and $1 trillion merchandise exports annually by the next five years.
Rationale behind this expectation:
- Several labour-intensive sectors had seen rapid export growth.
- The exports in the engineering goods sector rose by $5.2 billion over Q1FY20.
- Likewise, rice exports growth has remained positive since May 2020 and rose by 37 per cent in Q1FY22, compared to Q1 of 2019-20.
- India’s merchandise imports in June was $41.86 billion, up 96.33 per cent YoY and 2.03 per cent as compared with June 2019.
Resultant:
As a result, India was a net importer in June, with a trade deficit of $9.4 billion, widened by 1,426.6 per cent over the trade surplus of $0.71 billion last year. India was a net exporter in June last year due to the disruption caused by the pandemic.
BY :AMIT GUPTA