India's share in global computer services exports jumps to 11% in FY23 - Exportify Pulse Edition - April 21, 2023
India's share in global computer services exports jumps to 11% in FY23
With software exports hitting a record high of USD 320 billion in FY23, the country's share in global computer services exports has jumped to around 11 per cent in the year, according to an analysis. But the country still lags in the overall services export share at about 4 per cent, according to analysis of the trade data for FY23 by DBS senior economist Radhika Rao.
According to her, the strong services trade performance will add to the improving external balance dynamics this year, which is also aided by falling commodity prices.
The country's share in computer services exports in the global trade is at a significant 10-11 per cent, while the overall services exports share is only 4 per cent in 2022, according to the DBS analysis.
Net service trade under the balance of payments (BoP) jumped from a monthly average of USD 7.3 billion in 2019 to USD 12.9 billion in 2022 and is on course to touch a new of high of USD 13.5 billion in early 2023, said Rao.
On a full-year basis, services exports rose to a fresh high at USD 320 billion in FY23, up from USD 255 billion in FY22, marking a second consecutive year of record high. Even as import payments also rose, the full-year services trade surplus jumped to USD 142 billion, more than a third higher than FY22.?
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India will be able to export sugar despite El Nino forecast
India’s sugar production next season will be enough to meet the local demand and the country will also be able to export some quantities of the sweetener, despite concerns about the emergence of the El Nino weather pattern, a top government official said.
Forecasts of the emergence of the El Nino phaenomenon, which often is blamed for causing deficient rainfall in India, has made the sugar industry worried about the impact on the output of sugarcane and in turn on the production of sugar. However, Subodh Kumar Singh, joint secretary at the Department of Food and Consumer Affairs, sought to allay the concerns.
?"IMD (India Meteorological Department) has forecast a normal monsoon. So, production of sugar will also be in a normal range," Singh told ET. “Even if production is impacted, it will not be that huge that there will be ashortage of sugar," he added.
India being the second largest sugar producer in the world after Brazil, the possibility of its exports from India is significant for the global sugar supply. International sugar prices are currently ruling at an 11-year high as India is not expected to export additional sugar in the ongoing sugar season that ends in September.
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China's share in India's import basket down to 13.79% in FY23: Govt?
NEW DELHI: China's share in India's import basket has declined to 13.79 per cent in 2022-23 from 15.43 per cent a year ago, with inbound shipments of major items like fertilisers and electronic goods coming from alternative markets, the commerce ministry?said on Thursday.
However, in absolute terms, the?total imports from China?increased to $98.51 billion during the financial year ended March against $94.57 billion in the previous fiscal.?As per the latest trade data issued by the commerce ministry, India's overall imports increased by 17.38 per cent to $892.18 billion from $760.06 billion in FY 2021-22 (April-March). Meanwhile, India's exports to China fell to $15.32 billion in FY23 from $21.26 billion a year ago, showing a negative growth of nearly 28 per cent, the data showed.?India's overall exports (Merchandise and Services combined) in FY 2022-23 (April-March) is estimated to exhibit a positive growth of 13.84 per cent to $770.18 billion from $676.53 billion in FY2021-22.?The country's trade deficit has widened to $122 billion in FY23 from $83.53 billion, the data showed.
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https://timesofindia.indiatimes.com/business/india-business/chinas-share-in-indias-import-basket-down-to-13-79-in-fy23-govt/articleshow/99469424.cms
India’s iron ore exports doubled in Q4 FY23 on China opening up, duty withdrawal
New Delhi India’s iron ore exports nearly doubled year-on-year in January-March FY23 to 11.59 million tonnes (mt) on the back of pent-up demand from China, its key market, and with improved offers following the withdrawal of export duty in mid-November. Exports in Q4 FY22 were 6.25 mt.
However, full-year (FY23) exports remained depressed by 20 per cent, as per data accessed by businessline. In FY23, iron ore exports were 21.25 mt; while in the FY22, it was 26.39 mt.
According to exporters, the fall happened on the back of slowing export orders for nearly six months of the year due to the export duty levy, and continuing Covid-led restrictions in China.
The levy was there between May and November when exports dropped to 4.35 mt, down 70 per cent y-o-y, versus 14.31 mt in the year-ago period.
India produces 9.2 per cent of the world’s iron ore, with Australia being the largest, followed by Brazil and China.
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Editor's Note
New Foreign Trade Policy to make pharma industry sustain its leadership status in global markets
India’s new Foreign Trade Policy, unveiled recently by Union minister of commerce and industry Piyush Goyal, will support the pharma sector to sustain its leadership status in global markets.
The Union government said that with the new Foreign Trade Policy, it envisages India achieve the target of US$ 2 trillion in exports by 2030. It further underlines the focus to promote and regulate trade. The new policy has excluded the sunset clause and end-period, to make certain exporters and importers have the assurance on stability and continuity during this extremely altering geo-political situation.
Dr Sanjit Singh Lamba, managing partner, Trillyum Consulting, said that the new Foreign Trade Policy 2023 would be helpful to increase the resilience of India's exports in the global trade environment and increase India's share in the global markets.
The major focus of FTP 2023 is towards making this policy responsive to changing dynamics, working towards making Indian Rupee a global currency and allowing international trade settlements in the Indian rupee. It will help to make India a leader in specific sectors such as pharmaceuticals, engineering goods, and textiles. Though in general no specific benefits are introduced for the pharmaceutical sector, it will create competitiveness and more ease of doing business and will remove uncertainties and create continuity and stability in India's trade. It may particularly increase trade in UAE and Australian region based on Free Trade Agreements done recently, Dr Lamba told Pharmabiz.
Chiming in on a positive note, Kaushik Desai, pharma consultant, said that the policy has come in at the right time. It is set for a smooth implementation in achieving its objectives in the wake of the current economic slowdown of trade globally. Indian pharma industry is optimistic about this even as this sector saw a decline of 2.62 per cent in February 2023, at $1.99 billion as compared to $2.04 billion reported during the same period of previous year.
Sunil Attavar, former president, Karnataka Drugs and Pharmaceutical Manufacturers Association said that the Foreign Trade Policy 2023 is well formulated keeping in mind the needs of the future growth of exports. The emphasis on process re-engineering and automation are especially welcome. It will help improve compliance and also help entrepreneurs focus on their core business and make it easier for them to access export benefits. This will result in making them more competitive and increase export revenues.
According to the Ministry of Commerce, the additions to the new Foreign Trade Policy are E-commerce, Internationalization of the India Rupee, District Exports Hub, and Merchanting Trade reform. As per the government’s Vivaad se Vishwaas initiative, to settle tax disputes amicably, it introduced a special one-time Amnesty Scheme under the FTP 2023 to help close old pending authorisations and start afresh. While this is effective from April 1, it will be available till September 30, 2023, to handle default on export obligations.
Source: pharmabiz