Bikky Khosla | 14 Mar, 2022
Exports in February rose to $33.81
billion, higher by 22.36 percent on a year-on-year basis, according to latest
available official data. Value of non-petroleum exports was $29.70 billion
while exports of non-petroleum and non-gems & jewellery amounted to $26.60
billion. Monthly exports crossed the $30 billion mark for 11th consecutive time
during the fiscal, and it seems we are on course to cross the $400 billion
While the above figures are
encouraging, the ongoing conflict between Russia and Ukraine poses a challenge to
the sector, particularly exports of food products from India. Our exports to Russia
stood over $2.5 billion out of a total bilateral trade of
$8.1 billion in 2020-21. India is a major exporter of food products such as
tea, seafood and coffee to Russia and the conflict impacted exports of these
products to the country.
In this scenario, the government
should continue to closely monitor the situation and step in to help the
exporters whose products have been stuck midway. Also, suspension of operations by some major shipping lines deteriorated
the situation. Additionally, as logistics costs have risen sharply, our exporters are sitting on large orders.
These issues need to be cautiously observed by the Centre.
Meanwhile, experts have expressed
concern over the likely impact of rising commodity prices on the manufacturing
sector as well. The ongoing Russian-Ukrainian crisis has led to multi-year high
levels in prices of crude oil, natural gas, coal, nickel, copper, aluminium,
titanium, etc. This will definitely impact our manufacturing sector. In this scenario,
the government should keep itself ready to extend a helping hand to the sector.
I invite your opinions.