Economic Survey 2022: Despite several downside risks, the unpredictable but spectacular resilience of India’s external sector augurs well for the revival of growth in the economy. This was stated in the Economic Review, 2021-22, presented in Parliament on Monday. The review indicates a strong return of exports and imports in the short term, which was not expected earlier by the policymakers. According to the survey, “This is notable given the slowdown in global trade growth, rising shipping rates and the problem of shortage of containers.”
Exports target of $400 billion for 2021-22
The Survey indicated that against the ambitious target of exports of $400 billion for 2021-22, India has achieved more than 75 per cent of the level with exports of goods worth $301.4 billion which is expected to be achieved during April-December, 2021. -22 is more than the target of $300 billion.
Due to the announcement of relief package by major economies, good recovery in major markets, increase in consumer spending, improvement in savings and disposable income, rise in global commodity prices and boost to exports, boosted exports in 2021-22. . Since all these key factors are expected to remain in force for the time being, the review exudes confidence of excellent export performance in the next financial year as well.
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The survey cautioned, “However, for India in 2022-23 due to tightening of global liquidity and continuing volatility in global commodity prices, higher shipping costs as well as new variants are linked to the spread of COVID-19.” Risks may remain.
increase in base
The review indicated that Marine Products, Buffalo Meat, Coffee and Dairy Products have registered strong growth during the current year, which did not perform well in 2020-21. The Survey noted the growth potential of the sector, emphasizing this augurs well for diversification and improvement in agricultural exports in the coming years.
Exports of agriculture and allied products (including marine and plantation products) grew by 23.2 per cent to $31.0 billion during April-November 2021, the Survey said.
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difficult challenges
Like the reviews of previous years, the Economic Survey emphasized on diversifying India’s exports. “India has diversified significantly in its export destinations over the past 25 years, yet more than 40 per cent of India’s exports are concentrated in just seven countries,” it said.
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