India’s Export Import Trends for Merchandise Goods in FY 2021-22

We list India’s export import trends for merchandise goods in FY 2021-22. India’s merchandise exports soared to a record high of US$417.81 billion during FY 2021-22, surpassing the government’s target of US$400 billion. The export growth was mainly driven by a surge in demand for products like petroleum, cotton yarn, textiles, chemicals, and engineering goods. At the same time, Indian goods imports also surged at US$610.22 billion, mainly driven by increase in imports of crude, coal, gold, and electronics.

As per government data, merchandise exports from India reached a new high at US$417.81 billion during the financial year (FY) 2021-22, marking a surge of 43.18 percent over the US$291.18 billion recorded in the previous fiscal, and an increase of 33.33 percent over US$313.36 billion during FY 2019-20. This 2021-22 figure excludes export data from non-EDI (electronic data interchange) ports, and is expected to be even higher.

At the same time, India’s merchandise imports in FY 2021-22 soared to US$610.22 billion, an increase of 54.71 percent over the U$394.44 billion registered during FY 2020-21, and an increase of 28.55 percent over US$474.71 billion in FY 2019-20.

India’s trade deficit widened to 87.5 percent to US$192.41 billion in FY 2021-22 as against US$102.63 billion in the previous fiscal.

Key drivers of India’s export growth during FY 2021-22

This is the first time India has achieved its ambitious target of crossing the US$400 billion mark in merchandise exports. Driving the surge in exports is pent up unmet demand during major waves of the COVID-19 pandemic as well as the expansionary monetary policy adopted by developed countries to deal with the impact of the pandemic.

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Major beneficiaries of India’s export growth include petroleum products (152.1 percent); cotton yarn, fabrics, made-ups, handloom products, etc. (55.1 percent); man-made yarn, fabrics, made-ups, etc. (46.9 percent); engineering goods (45.5 percent); jute products (36.2 percent); leather and leather products (32.2 percent); readymade garments of all textiles (29.9 percent); and handicrafts, excluding hand-made carpets (22 percent). Other commodities that witnessed an increase in export demand include organic and inorganic chemicals, marine products, mica, coal, and other ores and minerals, including processed minerals.

Exports surged year-on-year (YoY) to the United States by 46.4 percent, the United Arab Emirates (66.9 percent), Bangladesh (64.5 percent), Netherlands (90.5 percent), Singapore (26.8 percent), Hong Kong (7.8 percent), United Kingdom (28 percent), Belgium (90.4 percent), and Germany (21.1 percent) during FY 2021-22.

Factors driving increase in Indian imports during FY 2021-22

India’s import of merchandise goods has surged even higher than its export target, resulting in a high trade deficit at 87.5 percent. Major factors contributing to this soaring import bill include sharp growth in imports of crude oil, coal, gold, electronics, and chemicals as the economy reopened and business and consumption activity stabilized. Rising prices of commodities, including crude oil and coal, have played a significant role in adding to India’s import valuation.

China remained the top source for Indian imports during FY 2021-22, followed by the UAE, USA, Saudi Arabia, Iraq, and Switzerland. Other important countries contributing to India’s import basket during FY 2021-22 were Hong Kong, Singapore, South Korea, and Germany.

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