Bottom up, all of government approach behind reaching $400 billion target, Commerce Minister says

Commerce and Industry Minister Piyush Goyal

Sticking to a full- government approach incorporating all stakeholders, from ministries to farmers, has enabled India to reach the $400-billion export target for the first time since 2014, the commerce ministry said.

India has for the first time met the government’s annual export target since 2014.

Specific micro-targets based on countries, products and states, followed by central ministries, state governments, district administrations and ports, among others, also played a big role in reaching the target, commerce and industry minister Piyush Goyal said.

The target was achieved nine days ahead of schedule. Exports also crossed the $300-billion-a-month level for 11 consecutive months in FY22. The highest ever monthly merchandise exports recorded was $39.3 billion in December 2021.

India’s rising manufacturing competitiveness and quality consciousness also helped. “Engineering goods exports have gone up by 50 percent compared to last year, registering an all-time high of $108 billion,” director general of foreign trade Santosh Kumar Saragi said. Similarly, electronics goods saw a 41 percent jump over the previous year, he said.

Sarangi also pointed out that agri exports hit the highest in 2021-22, driven by commodities like rice (other than basmati), marine products, wheat, spices and sugar.

Policy behind the success

The Statistics Division of the commerce department drew up an elaborate product country matrix for 200 countries, including the smallest of countries. “Even the (foreign) states were identified where the export potential is higher, and touching base with the state was also done was done in consultation with the mission abroad,” Sarangi said.

Exports were also examined by product and by state. A detailed target-setting exercise was carried out in consultation with Indian missions abroad, export promotion councils, territorial divisions, commodity boards and industry bodies.

The department also analysed instances of market share being lost for various products, identified low-hanging fruit—exports where India is traditionally strong—to push up immediate shipments and committed to faster resolution of exporters’ issues, the government said.

The government also pushed the districts as exports hubs initiative, whereby district administrations have been asked to identify, facilitate and push exports. “The districts have become more conscious in addressing the issues of export infrastructure and export gaps. Out of 750 districts, we have district export plans ready for more than 480 districts,” Sarangi said.

Dialogue with partner countries also helped exports. India has seen a 94 percent jump in exports to Australia, a 65 percent rise in the case of the UAE, and a rise of 46 percent for the United States, all nations with which India is currently engaged in active trade talks.

A range of new products has also been shipped abroad for the first time in FY22. They include fresh vegetables and mangoes, apricots from Ladakh, black rice from Chandauli, oranges from Nagpur, bananas from Theni, bhoot jolokia chilli from Nagaland, red and black rice from Assam and millet from Himachal Pradesh, among others. The government has also significantly pushed exports of processed items such as honey, cocoa, fruit jams and wine, in which India hasn’t shared global expertise till now.

Referring to a UNCTAD study from 2018-19 which found that every $1 million of exports creates 238 jobs, the commerce department said the $400 billion of exports have led to major job creation.

“India has comfortably surpassed its highest ever exports of $330 billion in 2018-19. Considering the groundwork done by the government for building the capacity of domestic industry, signing of trade deals, and the new entrepreneurial spirit in India, I expect merchandise exports to cross $500 billion in the coming fiscal,” Apparel Export Promotion Council chairman Narendra Goenka said.