The India-Australia FTA, officially called the Australia-India Economic Cooperation and Trade Agreement, is the first trade agreement signed by India with a developed economy after more than a decade. The pact is expected to give a big push to bilateral trade as it will not only eliminate or lower tariffs on a large number of goods but also address the non-tariff barriers such as technical barriers to trade, apart from sanitary and phytosanitary restrictions.

 

According to government estimates, trade in goods is likely to almost double to $50 billion in five years from about $27 billion at present. As India is not part of any significant regional trading bloc and most major economies the world over are forging bilateral or regional trade pacts with other countries, it is important for India, too, to sign similar agreements, so that it does not lose out on preferential market share and weaken its export competitiveness.

 

India is hopeful that the FTA with Australia will give a positive signal to other developed countries such as the UK, Canada and the EU, who are already on the negotiating table for similar pacts with New Delhi. This would show that India means business and is ready to conclude such agreements fast if a balanced deal could be struck.

 

Is the tariff reduction substantial for both sides?

 

The India-Australia FTA is an ambitious pact with significant commitments to tariff cuts. Australia will provide zero-duty market access for 96.4 per cent value of Indian exports (98 per cent of tariff lines) on the first day of implementation of the agreement.

 

Exports of several labour-intensive sectors, currently facing import duty of 4-5 per cent in Australia, will gain from the immediate duty-free access. These include most textiles and apparel, a few agricultural and fish products, leather, footwear, furniture and sports goods, jewellery, engineering goods, and selected pharmaceuticals and medical devices. Tariffs on the remaining 113 tariff lines, amounting to 3.6 per cent of India’s exports, will be phased out in five years.

 

Australia, too, will gain considerable market access in India with tariffs being eliminated on more than 85 per cent of the Australian goods exports immediately, rising to almost 91 per cent in over 10 years.

 

While tariffs on items such as wool, sheep meat, coal, alumina, metallic ores, and critical minerals will be immediately reduced to zero, on other products such as avocados, onions, cherries, shelled pistachios, macadamias, cashews in-shell, blueberries, raspberries, blackberries and currants, tariffs will be eliminated over the next few years. Import duties will also be slashed on Australian wines, though not eliminated.

 

Has India's sensitivities with respect to agriculture and dairy sectors been addressed?

 

India has managed to completely shield its dairy sector from any tariff reduction under the FTA while excluding most sensitive agriculture items such as chickpeas, walnut, pistachio nut, wheat, rice, bajra, apple, sunflowers seed oil and sugar. Other items in the exclusion list, where no concessions have been extended, include silver, platinum, jewellery, iron ore, and most medical devices.

 

What are the provisions for services?

 

Both countries have decided to facilitate the recognition of professional qualifications, licensing, and registration procedures between professional services bodies. In a boost to Science, Technology, Engineering or Mathematics (STEM), and information and communications technology (ICT) sectors, the length of stay for an Indian student with a bachelor’s degree with first-class honours in the areas will be extended from two to three years. Australia will also provide new access for young Indians to participate in working holidays in the country.

 

How long was the FTA in the making?

 

The India-Australia FTA negotiations first began in 2011 but they were suspended in 2015 as the talks were stuck over issues such as market access for dairy products in India and visa liberalisation for Indian professionals. The negotiations were resumed in September 2021, and this time around things got done in a record time and the pact was signed in just over six months.

 

Is there a plan to deepen this agreement in the future?

 

Yes. Both sides want to deepen the engagement and work towards a Comprehensive Economic Cooperation Agreement (CECA). It has been agreed that within 75 days of the signing of the pact, a negotiating subcommittee will start negotiations on issues including other areas for market access for goods and services, a digital trade chapter, and a government procurement chapter to transform the FTA into a CECA.

India's wheat exports hit 7.85 million tonnes in the fiscal year to March, an all-time high and a sharp increase from 2.1 million tonnes in the previous year, traders said, as Russia's invasion of Ukraine cuts off rival Black Sea supplies.

 

Earlier this month, a top government official said India would export a record 7 million tonnes of wheat in the 2021-22 fiscal year as a rally in global prices gave the world's second biggest producer of the grain an opportunity to gain market share.

 

India achieved its target of exporting 7 million tonnes of wheat on March 21, according to the Indian government, which is yet to issue wheat shipment data for the last 10 days of March.

 

Traders said wheat shipments, including cargoes sold to neighbouring Bangladesh by land, totalled 7.85 million tonnes in 2021-22, surpassing the target of 7 million and indicating robust exports in the 2022-23 fiscal year that began on April 1.

 

Other than Bangladesh, India exported wheat to South Korea, Sri Lanka, Oman and Qatar, among others, traders said. Most export deals were signed at between $225 and $335 a tonne free on board, they said.

 

A report by State Bank of India (SBI) economists showed that the ongoing conflict between Russia and Ukraine might impact certain high-frequency indicators like financial markets, exchange rate and crude prices in the short term for India. However, amidst the negative clamour, the Indian economy could see a silver lining as it may have the opportunity to fill the vacuum in global trade due to the war. ET's Sachin Dave and Kiran Kabtta Somvanshi explain.

 

'Business has been very brisk, and both Mundra and Kandla ports have been very busy handling outbound wheat cargoes,' said Rajesh Paharia Jain, a leading New Delhi-based trader.

 

As war raged across the Black Sea region, global wheat prices have surged, and supplies from both Russia and Ukraine, which together account for about 29% of global wheat exports, have dropped substantially.

 

Russia calls its actions in Ukraine a 'special military operation' to demilitarise the country. Western countries call it an unprovoked war of aggression.

 

India's new season wheat harvest is underway, and this year's production is pegged at a record 111.32 million tonnes - the sixth straight surplus output - encouraging traders to clinch more export deals.

Jordan’s state grain buyer has issued an international tender to buy 120,000 tonnes of milling wheat which can be sourced from optional origins, European traders said on Monday.

 

The deadline for submission of price offers in the tender is said to be April 6.

Russia and Ukraine account for about 25% of the world's wheat exports. However, Russia's invasion of Ukraine and the subsequent Western sanctions against Moscow have curtailed their wheat supplies drastically. As a result, many countries which were sourcing wheat mainly from these two nations are now in dire need of alternatives.

 

India, the largest wheat producer after China, is reported to be eyeing the void. The government plans to allow increased exports to cash in on the higher price of wheat in the international market.

 

Food security campaigners however, emphasise the need to prioritise local prices and ensure adequate supplies for domestic consumption before deciding on the quantum of exports.

 

Minimal exports

 

While Russia and Ukraine exported 183 and 91 million tonnes (MT) of wheat, respectively, between 2017 and 2021, India exported a miniscule fraction of its output, or just 12.6 MT in the period. Five other countries accounted for the bulk of wheat exports in this period, including the European Union (157 MT), the U.S. (125 MT), Canada (112 MT) and Australia (83 MT).

 

India, which had the second-highest wheat supply (including production, existing stocks and imports) in this period — 613 million tonnes — exported only 2% of this, with about 80% used for domestic consumption, and the rest stored. In contrast, other leading exporters could sell big chunks of their supply. For instance, the U.S. exported 31% of its 404 MT of supply in the 2017-2021 period. Canada exported 60.5% of its 186 MT, while Australia exported 57% of its supply of 146 MT.

 

Global market

Many countries in Africa, West Asia and Southeast Asia rely heavily on Russian and Ukrainian wheat. Egypt, the biggest importer of wheat, sources 93% of its needs from the East European neighbours. Indonesia, the second-largest importer, has a 30% dependency on these two nations. African nations such as Sudan (80% reliance), Tanzania (64%), Libya (53%), Tunisia (52%), and West Asian countries including Lebanon (77% dependency), Yemen (50%) and U.A.E. (42%) are also highly dependent on supplies from the two neighnours now at war.

 

India is now focussing on exporting wheat to many of these nations, said Apeda (Agricultural and Processed Food Products Export Development Authority) chairman Dr. Madhaiyaan Angamuthu. "Our focus markets are Egypt, Turkey, Nigeria, Algeria, Middle East, Indonesia, Vietnam, Sri Lanka, Bangladesh, Thailand, Philippines, Morocco and Tanzania," he added.

 

"To give impetus to the export promotion of wheat as well as to bring focus on the challenges and bottlenecks faced in production and export, APEDA has created a task group," Dr. Angamuthu said.

 

With India's wheat harvesting season (March to May) coinciding with the supply crunch, a bumper crop expected again this year, and a significant amount of buffer stocks, food security campaigners agree that India is well-poised to step in and fill the void. However, they cautioned that India should not lose focus on domestic needs while exporting surplus wheat.

 

Domestic needs

Ensuring the stability of prices in India and availability of grain for internal consumption should be of utmost priority to the Indian government while ensuring that farmers are adequately compensated, said Dipa Sinha, Assistant Professor at the School of Liberal Studies at Delhi's Ambedkar University.

 

"Meeting food security requirements for all Indians should be the first priority of the government,' said Dr. Sinha, who was involved with the Right to Food campaign. 'This would require continuing with the PDS [public distribution system], Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and also expanding the net to bring in more people who are currently excluded. This is also essential considering that the market prices are expected to increase further. On the other hand, with higher prices being available, the government should consider buying wheat required for these food security requirements from the Indian farmers at a better price than the current MSP," she added.

 

"The government should plan this move in such a way that it does not impact local consumption. A bumper crop of wheat is expected, so the government can procure enough for its distribution and buffer needs. Further, as of now, there are no export restrictions, so farmers can also get the advantage of higher prices by selling the surplus to private traders for exports," Dr. Sinha opined.

 

The contentious issue of exporting wheat from the FCI stocks adds another dimension to this issue. A trade expert, who spoke on the condition of anonymity, said that if India decides to export wheat from its stocks, some developed nations may raise objections at the World Trade Organisation. Already, in March, India was accused of exporting rice from its stocks. India had replied that its rice exports were not from stocks set aside under the public stock holding programmes.

 

Boosting farm revenue

Biraj Patnaik, former Principal Adviser to the Commissioners of the Indian Supreme Court in the Right to Food case, observed that the peace clause adopted in W.T.O.’s Bali Ministerial in 2014 does not prevent India from exporting food grains.

 

'With the buffer stocks at hand, India should increase its wheat exports in order to stabilise global prices to the extent that it can,' Mr. Patnaik said. 'It is also important because the countries that were dependent on Russia and Ukraine for their wheat are looking for an alternate source. The government should use this opportunity by procuring all the wheat grown at M.S.P. which would serve the interests of Indian farmers," he added.

 

However, exports should not be done at the cost of domestic consumption, especially with the recent expansion of the PMGKAY program, he cautioned.

Indian and Australian companies may be able to bid in each other's central government tenders as the bilateral Economic Cooperation and Trade Agreement (ECTA) provides for negotiations, in a chapter on government procurement, to begin in the next 75 days. Officials said India is likely to get access to about $10 billion worth of Australia's official procurement, pegged at $60-65 billion annually.

 

According to the trade pact signed on Friday, a chapter on digital trade will also be negotiated soon. The commerce and industry ministry will begin talks with other ministries on the issue, said officials. 'Within 75 days after the date of signature of this agreement, the negotiation subcommittee shall commence negotiations on amendments to this agreement,' said the ECTA.

 

Comprehensive Economic Cooperation Agreement

This will be 'on a without prejudice basis in areas including inter alia market access for goods and services, a complete product specific rules schedule, a digital trade chapter and a government procurement chapter, to transform this agreement into a Comprehensive Economic Cooperation Agreement,' said the ECTA.

 

The two sides will establish a negotiation subcommittee comprising government representatives for the purpose.

 

'Australia has an MSME (micro, small and medium enterprises) order under which their government procurement is protected, similar to India's public procurement (preference to Make in India) order,' said an official, who did not wish to be identified. Moreover, defence is a large part of the $60-65 billion that is not covered in the ECTA, the official said, explaining that likely gains for India could be in the remaining $10 billion government procurement market.

 

Services Trade

 

Australia agreed to amend its tax law to stop the taxation of offshore income of Indian firms providing technical services in the country. 'This was a long-standing demand of our IT industry that has been met,' said the official.

 

To liberalise services trade, the agreement provides for a transition to a 'negative list' wherein India would have to state the exceptions to services it wants to open up, from a 'positive' list where it spells out the services it can liberalise. 'The world is moving to a negative list and that's how most developed countries negotiate,' said the official.

 

Similar provisions are there in the Regional Comprehensive Economic Partnership agreement, of which Australia is a member. 'This will be a huge exercise, as the Centre would have to consult every state on their measures, such as regulations, related to services,' said an expert on trade issues, who did not wish to be identified. All services excluded by the states would be put on the negative list.

 

Agri and Wines

 

Australia and India have agreed to undertake cooperation to promote agricultural trade as part of the pact and will now work toward concluding an enhanced agricultural memorandum of understanding (MoU), though there is no direct reference of this in the agreement. 'Since Australia's per unit productivity is higher than ours, the MoU with the agriculture ministry will focus on tech technology and research,' said the official.

 

The pact also provides for duty concessions on wines that would attract investment in India. Industry executives said India's decision to reduce duty on Australian wine will give consumers high-quality premium brands and bring in price rationalisation.

 

India’s coffee exports hit a new high during 2021-22, clocking over a billion dollars for the first time. This latest export milestone is notwithstanding the challenges such as higher freight rates and the ongoing Russia-Ukraine crisis impacting the shipments towards the end of the financial year.

 

Coffee shipments during 2021-22 registered a whopping 42 per cent growth at $1.042 billion over the previous year’s $734.98 million, aided by an increase in volumes and higher realisations. In rupee terms, the shipments are estimated at Rs7,766.77 crore — a 42 per cent growth over the last year’s Rs5,451.90 crore.

 

In volume terms, the coffee shipments also scaled a new high of 4.19 lakh tonnes, a 35 per cent growth over the previous year’s 3.10 lakh tonnes.

 

'We are happy that we have achieved the ambitious export target fixed by the government,' said KG Jagadeesha, CEO and Secretary, Coffee Board. The Commerce Ministry had set an export target of $1.07 billion for fiscal 2022.

 

Jagadeesha said factors such as prevailing high prices due to short supplies in Brazil and Colombia; the increase in Indian production due to higher yields over the last two years; steps taken by the Coffee Board to clear logistical bottlenecks and promote coffees by organising virtual buyer-seller meets with over a dozen countries have contributed to the growth in shipments during 2021-22

 

The average per unit realisations for the Indian exporters were higher by about 5.4 per cent at Rs1,84,965 per tonne during 2021-22 as against Rs1,75,476 in the previous year.

 

Instant coffee segment

 

Ramesh Rajah, president, Coffee Exporters Association, attributed the growth in the shipments to the surge in international prices and post-Covid demand despite several challenges. Exports could have been better, but the hurdles on the high freight rates, container shortage, supply chain issues, and the Russia-Ukraine crisis impacted the instant coffee segment.

 

Russia is the largest buyer of Indian instant coffees, accounting for about 15 per cent of the shipments.

 

Rajah said the instant coffee shipments have been impacted due to the Russia-Ukraine conflict and exporters have been facing problems in realising their payments. The impact of the Russian crisis would be felt in the April-June quarter.

 

Coffee Board’s Jagadeesha admitted that exporters have been facing payment-related issues due to the Russia-Ukraine war and the government’s efforts to resolve it.

 

India exports over two-thirds of the over 3 lakh tonnes of coffee produced. Cheaper coffees are imported by the instant coffee makers to be re-exported as value-added soluble coffees.

 

For the current coffee year 2021-22 ending September, the Coffee Board, in its post-monsoon estimates, had pegged the crop size at 3.48 lakh tonnes, including 2.49 lakh tonnes of Robusta and 99,000 tonnes of Arabicas.

Indian Council of Agricultural Research (ICAR) led National Agricultural Research System (NARS) has developed 1956 high yielding varieties/hybrids of 80 field crops since 2014 which include 173 less water requiring varieties/hybrids of cereals (94), oilseeds (14), pulses (25), fiber crops (8), forages (12) and sugarcane (20).

 

Total of 56 less water requiring varieties/hybrids of field crops have been developed during  2018-19 to 2020-21, comprising of 31 of Cereals (10 of Rice, 7 of Wheat, 3 of Maize, 2 of Sorghum and 9 of Millets); 6 of Oilseeds (2 of Soybean, 2 of Groundnut, 1 of Sesame, 1 of Indian mustard); 10 of Pulses (1 of Urd bean, 4 of Pigeon pea, 1 of Horse gram, 2 of Chickpea, 1 of Lentil and 1 of Faba bean); 2 of Forages (1 each of Fescue grass and Setaria grass); 2 of cotton and 5 of Sugarcane.

 

During last 3 years, 6975.32 quintals (2018-19: 2446.7 q, 2019-20: 2204.45 q and 2020-21:2324.17 q) breeder seed of less water requiring varieties was produced and supplied to various public and private seed production agencies for downstream multiplication as foundation and certified seed by ICAR. A total of 74,43,879 q of certified/ quality seeds of high yielding varieties/hybrids (including stress tolerant) was made available during the years 2019-20 to 2020-21.

 

This information was given by the Union Minister of Agriculture and Farmers Welfare Shri Narendra Singh Tomar in a written reply in Rajya Sabha today.

India is aiming to export a record 10 million tonne (MT) of wheat in 2022-23 amid rising global demand because of the Russia-Ukraine war.

 

'We are working with several other ministries – agriculture, railways, shipping — as well as exporters and state governments to increase our wheat exports significantly in the current fiscal,' Piyush Goyal, minister for commerce and industry, said on Sunday.

 

According to estimates by the Directorate General of Foreign Trade (DGF), India exported a record 7 MT of wheat in 2021-22 which was valued at $2.05 billion. Around 50% of the shipments were to Bangladesh in the last fiscal.

 

In 2022-23, India is likely to export wheat worth around $4 billion given that prices are expected to rise in the coming months to around $400 to $430 a tonne (inclusive of all costs), especially in North Africa and South-East Asia countries. The Current prices are in the range of $370-$380 a tonne.

 

Meanwhile, the commerce ministry has set up a task force on wheat exports with representatives from various ministries, including commerce, shipping and railways, and exporters.

 

Officials say given the geopolitical situation, the demand from those countries especially in South-East Asia and North Africa, which used to source wheat from Ukraine and Russia, which have around 25% share in the global wheat trade, would be robust in the coming months.

 

'We will be sending delegations with representatives of key ministries to countries in south-east Asia and North Africa to boost our wheat exports,' M Angamuthu, chairman, Agricultural and Processed Food Products Development Authority (APEDA) told FE.

 

The official delegation will be visiting countries including Indonesia, Philippines, Thailand, Vietnam, Turkey, Lebanon, Algeria, Tunisia, Egypt and Morocco this month to boost wheat exports to these countries.

 

While the bulk of India’s wheat exports is currently sourced from Madhya Pradesh because of its proximity to the Kandla and Mundra ports, the commerce ministry is also discussing with the shipping ministry to commence exports of wheat from Nhava Sheva (Navi Mumbai, Maharashtra) and Kakinada (Andhra Pradesh) ports.

 

India has been the world’s largest rice exporter in the last decade — export earnings stood at a record $8.7 billion in 2020-21 and crossed $ 9.6 billion in 2021-22. But the country had been a relatively marginal player in global wheat trade until 2020-21.

 

The current wheat stocks with the Food Corporation of India (FCI) are now roughly three times the buffer norm and the ongoing rabi procurement will increase the stocks further. FCI has more than 23 MT of wheat stocks against a buffer norm of 7 MT.

 

Madhya Pradesh has recently announced a waiver of mandi fee and other levies aggregating 3.5% on grain purchases in the state, in a bid to increase wheat exports. The state is the second-biggest producer of wheat in the country. State chief minister Shivraj Singh Chouhan has called a meeting of wheat exporters in Bhopal on Monday.

Connectivity with the Central Asian countries remains a key priority for India, said the President of India, Shri Ram Nath Kovind.  He was addressing the young diplomats of Turkmenistan at the Institute of International Relations in Ashgabat today (April 3, 2022). The President said that India is a member of both the International North-South Transport Corridor, and the Ashgabat Agreement. We have taken steps to operationalize the Chabahar port in Iran which can provide a secure, viable and unhindered access to the sea for the Central Asian countries. He said that while expanding connectivity, it is important to ensure that connectivity initiatives are consultative, transparent and participatory, with respect for the sovereignty and territorial integrity of all countries. India stands ready to cooperate, invest and build connectivity in the region.

 

The President said that India’s foreign policy has been constantly evolving since its independence. India’s emergence as one of the major economies of the world and the relevance of India’s technological capabilities has shaped key global negotiations. India’s partnerships with countries of the Global South have grown substantially while its relations with major powers have deepened further.

 

The President said that one of the key pillars of India’s foreign policy in recent years has been the 'Neighbourhood First' policy. The overarching philosophy of India’s engagement with its neighbours is to ensure that they also benefit from our economic development and growth. Thus, the focus of our Neighbourhood First policy is to enhance connectivity, augment trade and investment, and build a secure and stable neighbourhood. He said that while ‘Indo-Pacific’ is a recent addition to the geopolitical lexicon, India’s engagement with the Indo-Pacific region goes back several centuries. The dynamism and vitality of the region makes it a global economic centre. We stand for an open, balanced, rules-based and stable international trade regime in the Indo-Pacific.

 

The President said that one of the focus areas of Indian foreign policy in the last few years has been the revitalization of our historical ties with the Central Asian countries, which are a part of our ‘extended neighbourhood’. As developing countries, India and Central Asian countries share common perspectives and similar approaches. We face common challenges such as terrorism, extremism, radicalization, drug trafficking etc. India has also strategic relations with most of the Central Asian countries.

 

Speaking about ongoing conflict in Ukraine, the President said that India’s position on this issue has been steadfast and consistent. We have emphasized that the current global order is anchored in international law, UN Charter, and respect for territorial integrity and sovereignty of states. We are deeply concerned about the worsening humanitarian situation. We have called for immediate cessation of violence and hostilities and return to the path of dialogue and diplomacy. We have also provided humanitarian assistance to Ukraine.

 

The President said that the United Nations remains the most universal and representative international organization. At the core of India’s call for reformed multilateralism lies the reform of the UN Security Council, to reflect the contemporary realities. In this context, India values the support of Turkmenistan for our permanent membership in a reformed and expanded UN Security Council.

 

The President said that as Turkmenistan marches ahead in the ‘Era of people with Arkadag’, India, as a longstanding friend, stands ready to partner with it to realize the collective dreams of our people.   He expressed hope that his visit to Turkmenistan would impart a new momentum to further promote partnership between the two countries.

 

The President also inaugurated an ‘India Corner’ at the Institute of International Relations on the occasion. The ‘India Corner’ is envisioned to create interest in India amongst the students of the Institute in organizing India related activities. The Government of India has provided computers, books on India and musical instruments and other materials to equip the ‘India Corner’.

 

Earlier in the day, the President visited People’s Memorial Complex in Ashgabat and laid a wreath at the Monument of Eternal Glory. He also visited the Bagtyyarlyk Sports Complex where he offered floral tributes in front of the bust of Mahatma Gandhi and witnessed the Yoga demonstration by Turkmen people under the supervision of Indian instructor.

 

In the tomorrow morning (April 4, 2022), the President will leave for the Netherlands -the final leg of his state visit to Turkmenistan and the Netherlands.

Merchandise exports from India have reached USD 417.8 billion in the current financial year. This figure excludes the figures from non-EDI Ports and adding that, it is likely to exceed $418 billion, an all-time high in India’s export history. 

 

India has achieved highest monthly value of merchandise export in March 2022 amounting USD 40.38 billion, an increase of 14.53% over USD 35.26 billion in March 2021 and an increase of 87.89% over USD 21.49 billion in March 2020.

 

The exports have witnessed a significant growth in non-petroleum goods also in April 2021-March 2022 which was USD 352.76 billion, an increase of 32.62% over USD 266.00 billion in April 2020-March 2021 and an increase of 29.66% over USD 272.07 billion in April 2019-March 2020.

 

Addressing a press conference here today, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal said that India had truly gone from ‘local to global’ in response to the Prime Minister Shri Narendra Modi’s call. 

 

The Minister said that every Indian should be proud of the pace at which India is achieving ‘atmanirbharta’ while ensuring that every Indian benefits from this progress. He added that India has been able to achieve this spectacular target under the leadership of the Prime Minister.

 

Expressing confidence that India's economy is poised to break a number of records, Shri Goyal said that PM Modi had set lofty goals for India and that our nation is extremely capable of achieving such immense goals. To make Possible the Impossible, tirelessly strive for it and collectively work towards it, he added.

 

Shri Goyal said the ‘never say die’ spirit of our exporters, the relentless effort by EPCs and Industry Association, the coordination among different GOI Departments and state governments reflecting the ‘whole of government approach’ has resulted in this stupendous achievement. 

 

Every sector of the economy, every farmer, every entrepreneur, every MSME and state governments worked together to achieve this lucrative goal, he said.

 

India’s diversified export portfolio in 2021-22 show India’s manufacturing abilities as well as growth in hi-tech goods, electronics and agricultural products. 

 

Exports of major commodity that recorded a positive growth during April 2021-March 2022 over April-March 2020-21 are Petroleum Products (152.1%), Cotton Yarn/Fabrics/Madeups, Handloom Products Etc. (55.1%), Other Cereals (52.2%), Gems and Jewellery (49.6%), Man-Made Yarn/Fabs/Madeups Etc.( 46.9%), Engineering Goods (45.5%), Coffee (49%), Electronic Goods (40.5%), Jute Mfg. Including Floor Covering (36.2%), Leather and Leather Manufactures (32.2%), Organic & Inorganic Chemical (32.0%), Plastic and Linoleum (31.1%), Marine Products (30.0%), Rmg Of All Textiles (29.9%), Handicrafts Excl. Hand Made Carpet (22.0%) and Cereal Preparations and Miscellaneous Processed Item (21.9%)  recorded a positive growth of, and 21.9% respectively over April 2020-March 2021.

 

Apart from diversified range of merchandise goods exported during 2021-22, India’s merchandise exports have also seen a significant increase to different countries, especially, developed countries. Exports to USA, UAE, Bangladesh, Netherlands, Singapore, Hong Kong, UK, Belgium and Germany grew by 46.4%, 66.9%, 64.5%, 90.5%, 26.8%, 7.8%, 28%, 90.4% and 21.1% respectively over April 2020- March 2021.

 

Shri Goyal said, notwithstanding the challenges posed by successive waves of Covid (2nd and 3rd wave), India’s merchandise trade performance has shown impressive growth and exports remained above USD 30 billion for twelve consecutive months during April 2021 to March 2022. 

 

The Prime Minister called for ‘local to global’ and today India's products are in great demand all over the world. This is a testament to the strength of leadership. PM now focuses extensively on 'whole of nation approach', he said.

 

One of the impressive growth has been seen in Agriculture sector and especially during the pandemic India emerged as a major global supplier of food / essential agriculture products. Agriculture exports buoyancy is driven by commodities such as rice (both basmati and non-basmati), marine products, wheat, spices and sugar, among others, recording the highest ever agricultural products export in 2021-22. 

 

Higher agricultural exports signify the ability of Indian farmers to meet the requirement of 1.35 billion population and yet produce a surplus to export to rest of the world. Integration into global market will allow our farmers to be more competitive, quality conscious and at the same time realize better prices for their produce.

 

When we set a target of $50 billion exports of Agriculture produce, then few imagined this would be possible. But today I want to congratulate our farmers who have grown more produce despite the Covid-19. The exports growth has helped farmers and labour intensive sectors and MSMEs. The government places special emphasis on these sectors, Shri Goyal said.

 

The Minister also assured that India will step up wheat supplies to countries hit by the Ukraine War.

'We will continue to export wheat in a big way to meet needs in countries who are not getting supplies from conflict areas. We are likely to exceed our wheat exports over 10 million tonnes in 2022-23. Our farmers are focused on increasing production,' he said.

 

The government has been working around the clock to provide a conducive environment and infrastructure for our industry and exporters to enhance their export performance. Policies and schemes aligned with the goal are being introduced and implemented for their benefit. The smooth roll out of RoDTEP and ROSCTL even in the midst of the pandemic reflects the strong resolve of the government to walk the talk. The Interest Equalisation Scheme has been extended to exporters and is likely to benefit a large number of MSME exporters. 

 

Shri Goyal said the Government is now working on rolling out the District Export Hub Initiative to strengthen the export infrastructure, logistics at district level to facilitate exports.

 

'We have succeeded in creating awareness about exports in every district through ODOP and PLIs,' he said.

 

Rigorous efforts for domestic capacity enhancement for deepening integration in the Global Value Chains are being made by working in close partnership with the industry to identify areas where India’s competitive advantages lay. The Government is working on strengthening our capabilities and create for the world on the lines of Make in India. Production Linked Incentive (PLI) schemes for 13 key sectors of manufacturing starting from FY 2021-22 have been announced.