Bikky Khosla | 15 Aug, 2021
Merchandise exports rose to $35.43
billion last month. This growth is 49.85 percent higher than $23.64 billion
worth of exports registered in July, 2020 and 35.05 percent higher than exports
registered in July, 2019. This is also the highest-ever exports recorded at
least in the previous 9 years and, no doubt, recovery in key global markets
played a key role in this growth. This development is welcome.
A deeper look into the last month
exports data shows that while growth
was led by higher demand for labour-intensive
sectors like engineering goods,
gems and jewellery, textiles and apparels and chemicals and electronic goods,
it is also noteworthy that exports
of non-petroleum and non-gems and
jewellery in July 2021 grew 28.18
percent y-o-y to $26.12 billion. This figure is 32.3 percent higher than the pre-Covid level (July
Meanwhile, it is good to see that the government
has continued to push exports of agricultural and processed food from regions
which were not earlier part of our export map. Recently, a consignment of
dehydrated Mohua flower was exported to France from Chhattisgarh. Similarly, a
consignment of processed Himalayan Goat meat sourced from villages of
Uttarakhand hills was exported to Dubai.
Complacency can a problem, however,
and at this moment the Centre should instead focus on addressing some major challenges
being faced by the sector. One such major issue is delay in notification of the
RoDTEP rates due to which exporters are losing out on huge orders.
Similarly, the sector is also demanding release of the necessary funds for MEIS
and clarity on SEIS benefits. These issues need to be resolved urgently.
invite your opinions.