Exports and Imports for Q3 Reach Higher Than Pre-Covid Levels

The latest data by the National Statistics Office (NSO) for FY22 mentioned that the Indian economy grew at the rate of 5.4 percent between October-December 2021. The total outbound trade stood at Rs. 7.8 lakh crore for Q3 FY22, which was higher than the exports in Q3 FY21 (Rs. 6.45 lakh crore) and in Q3 FY20 (Rs. 7.06 lakh crore).

Both exports and imports in Q3 FY22 were higher than the previous quarters. While higher exports are a good sign for the economy, the rising import figures need to be addressed by the government.

The total amount of exports in Q3 FY22 indicates that exports are rising as per the Commerce Department’s forecast. The figures also point towards the possibility of India achieving its ambitious annual merchandise export target of $400 billion in FY22.

An official said that India’s exports amounted to 20.4 percent of India’s GDP in Q3 FY22, higher than 17.8 percent in Q3 FY20. This was possible due to the higher global demand and the rise of commodity prices

India witnessed foreign direct investment (FDI) inflows of $12.46 billion in Q3 FY22.

“Usually, a large part of these investments make their way into sectors which have a significant export footprint. Since the latest FDI figures are a bit slower, that hasn't happened in the latest quarter,” said a senior official from the Department for Promotion of Industry and Internal Trade (DPIIT).

Imports have also risen sharply during Q3 FY22. They constituted Rs. 10.15 lakh crore of India’s GDP, up from Rs. 7.65 lakh crore in Q3 FY21.

“Imports were more than at least nine-quarter high. Overall imports have skyrocketed since FY21 but the pace has accelerated sharply in 2022,” said a functionary of the Federation of Indian Export Organizations (FIEO).

He added that higher imports signified higher consumer and industrial demand.

READ ALSO:

Two Foreign Portfolio Investors Settle Case with SEBI

Government Allows 20 percent FDI in LIC