India's electronic goods exports surge 42% to Rs 1.17 lakh crore in the last fiscal: Government - Exportify Pulse Edition-July 22,2022

India's electronic goods exports surge 42% to Rs 1.17 lakh crore in the last fiscal: Government

The country's electronic goods exports surged about 42 percent to nearly Rs 1.17 lakh crore in the last fiscal, the government informed Parliament today. The country has witnessed a huge jump in both manufacturing and exports of electronic goods in the last five years, Minister of state for electronics and IT Rajeev Chandrasekhar said in a written reply to the Lok Sabha.

"The export of electronic goods has substantially increased in the period 2017-18 to 2021-22 with a compound annual growth rate of 29 per cent whereas the production has grown with a compound annual growth rate of 17.9 per cent," he said.

As per the data shared by the government in Lok Sabha, India's electronics export was Rs 81,822 crore in 2020-21, which surged to Rs 1,16,894 crore in 2021-22. Similarly the electronics production in the country also grew from Rs 5,33,550 crore in 2019-20 to Rs 5,54,461 crore in 2020-21. Read More

Agricultural Exports Rise 14% In Q1 FY 2022-23

India's agricultural and processed food products exports rose 14 percent during the first three months of the current financial year 2022-23 (April-June). Total exports were to the tune of $5,987 million. During the same quarter last year, the exports were worth $5,256 million.

For 2022-23, the government had set an export target of $23.56 billion for the agricultural and processed food products basket under the Agricultural and Processed Food Products Export Development Authority (APEDA). The basket excludes tea, coffee, spices, cotton, and marine exports.

The exports of fresh fruits and vegetables registered 8.6 percent growth, while processed food products like cereals and miscellaneous processed items reported an impressive growth of 36.4 percent during the quarter, a Ministry of Commerce & Industry said. Read More

African continental free trade area presents huge opportunities for India: Exim Bank

India Exim Bank’s study titled “Building a Resilient Africa: Enhanced Role of India” finds huge trade complementarity between India and Africa. India’s total trade with Africa stood at $ 82.5 billion in 2021, recording the highest ever level witnessed by both regions.

Using ITC’s export potential methodology, the study finds the bilateral export potential of India and Africa at $ 48 billion. The paper also examined the evolution of India’s development cooperation with Africa over the years and emphasized the need for India to step up efforts to enhance this developmental partnership, especially in the context of changing global architecture in recent times.

To understand the geographical and sectoral distribution of India’s project exports to Africa, contracts secured by Indian project exporters in projects awarded by the MDBs like the AfDB, and the World Bank have also been analyzed. Read More

Govt may allow sugar mills to export more to prevent defaults

India may allow sugar mills to export more than previously permitted to help them prevent contract defaults, according to people familiar with the matter.

The government is considering allowing additional sales of 1 million to 1.2 million tons of sugar for the year ending Sept. 30, said the people, who asked to remain anonymous citing confidential matters. That’s on top of the current quota of 10 million tons.

India, the world’s second-biggest sugar producer, restricted exports in May to safeguard its food supplies. Now, with inventories appearing sufficient to satisfy domestic consumption, growers have asked to ship more volume. Any additional shipments this year would be bearish for global prices. Read More

Editor's Note

Soaring dollar good for now, but could hurt exporters in long run. Exporters should hedge a sizable value of their orders to safeguard themselves from currency volatility, says Ajay Sahai, DG & CEO of the Federation of Indian Export Organizations (FIEO).

Sahai advises exporters not to use currency changes to make profit in the midst of a volatile period for the Indian rupee. According to him, they should merely view it as the cherry on top and take steps to protect themselves by hedging against currency fluctuations. Nobody can predict when trends will change. The Indian rupee, which has recently been steadily losing value versus the dollar, crossed the 80/dollar mark for the first time ever on Tuesday. Experts worry that the rupee's decline will now be more severe.

A rising dollar has a variety of effects on the nation's exporters. According to Sahai, a rising dollar is excellent news for exporters because we would have been overpriced if other currencies were experiencing more severe depreciation. However, a broader perspective is required to fully understand the phenomenon of the rising US dollar. If rival currencies like those of China, Japan, and South Korea depreciate more quickly, India's relative competitiveness would decline in comparison to these nations.

Source: Economic Times