December 20, 2021
Outbound shipments have been estimated to cross the US$ 400 billion mark.
WTO predicts that India will see an increase of 4.7% of exports in the coming year.
Software exports mark a total US$ 148.3 which is more than the oil sales in Saudi Arabia.
The Software exports Industry is expected to grow exponentially in the coming year.
India’s exports industry is likely to continue with its upward trajectory in 2022, backed by a global demand recovery and boost in domestic manufacturing due to production-linked incentive schemes (PLI) according to several reports. Outbound shipments have been estimated to cross the US$400 billion mark and are expected to reach US$475 billion in 2022-23, according to exporters. However, these estimates are subject to India’s ability to manage and contain the new variant of Covid-19 i.e. Omnicron. The World Trade Organisation (WTO) also made certain predictions pertaining to India’s global expansion, which marks a 4.7% increase in the coming year 2022.
The survey carried out by the RBI in September indicates that exports of software services as well as services delivered by foreign affiliates of Indian companies mark US$148.3 billion in March, 2021 which is more than US$145.3 billion, the oil sales in Saudi Arabia for the year 2021.
India is home to the largest engineering population in the world, and therefore the software exports industry in India has the potential to reach greater heights in the upcoming year 2022. Although software exports are a part of export-led growth stories, they seem to have been gaining momentum in recent years.
The Government has also been taking several measures such as communicating actively with RoDTEP (Remissions of Duties and Taxes on Exported Products) rates, and releasing Rs 56,027 crore against pending tax refunds of exporters and steps to promote ease of doing business. So far, India has made commendable progress in maintaining a growth record for exports.
Steps have been taken to promote exports of goods and services by the Central Government which also includes the introduction of RoDTEP and Rebate of State and Central Levies and Taxes (RoSCTL) Schemes, along with the launch of the Common Digital Platform for the Certificate of Origin to ease in trade and help building up FTA utilization by exporters
There have also been initiatives taken to promote exports of goods and services by the government. These include, RoDTEP, Rebate of State and Central Levies and Taxes (RoSCTL) Schemes, the Common Digital Platform, developing FTA utilization by exporters, export hubs being promoted as districts, acknowledging obstacles and enabling a cooperative business environment.
The PLI schemes that were recently announced promise to support growth in the upcoming year, especially in electronics, mobile, drug and pharma sectors, which will also help in additional exports for the country. Along with the new Covid-19 variant spreading across some states, these are the deciding factors for the country to look out for to mark a 20% of growth in exports in addition to the government addressing the supply side challenges.
Exports for the month of January this year indicate double-digit growth as compared to the exports reports for the year 2020, when the economy was struggling due to the pandemic.
The trade deficit touched a record of US$23.27 billion in November with imports of gold and crude that have been growing doubly. With this, the Indian economy is also touching new heights and imports are rising steadily.