India’s foreign trade has undergone significant changes in recent years, influenced by various domestic and global factors. Here are some recent trends in India’s foreign trade:
- Increasing exports: India’s exports have been steadily increasing in recent years. According to data from the Ministry of Commerce and Industry, India’s exports grew by 7.4% in 2020-21, reaching a value of US$ 290.63 billion. This growth was driven by sectors such as engineering goods, petroleum products, and pharmaceuticals.
- Growing share of services: While goods continue to dominate India’s exports, the share of services has been increasing in recent years. In 2020-21, services exports grew by 2.7% to reach a value of US$ 213.20 billion, accounting for around 42% of India’s total exports. The major services exported by India include IT and IT-enabled services, travel, and financial services.
- Diversification of export destinations: India’s export destinations have been diversifying in recent years. While the US and the EU continue to be major export markets for India, exports to other regions such as Africa and Latin America have been growing at a faster pace. In 2020-21, India’s exports to Africa and Latin America grew by 12.6% and 11.6%, respectively.
- Increasing imports: India’s imports have also been increasing in recent years, driven by rising domestic demand and the need for imports of raw materials and capital goods. According to data from the Ministry of Commerce and Industry, India’s imports grew by 8.6% in 2020-21, reaching a value of US$ 389.18 billion. The major items imported by India include crude oil, gold, electronic goods, and machinery.
- Focus on self-reliance: In recent years, India has been focusing on promoting self-reliance in various sectors of the economy, including foreign trade. This has led to the launch of policies such as the Make in India and Atmanirbhar Bharat, which aim at promoting domestic manufacturing, reducing dependence on imports, and encouraging exports.