Indian Merchandise exports rise in both value and volume terms in 2022

NEW DELHI : India’s merchandise exports have recorded a healthy growth in both value and volume terms in 2022, economic think tank Global Trade Research Initiative (GTRI) said in a report on Thursday. Former Indian Trade Service officer Ajay Srivastava is the Co-Founder of GTRI. The outbound shipments rose by 14.6 per cent year-on-year to USD 453.3 billion in 2022.

“The study found that products where exports increased to cover a value of USD 315.9 billion (69.8 per cent of total merchandise exports). But, products whose export quantities increased over the previous year represent USD 285.6 billion (63 per cent of total exports),” it said.

Major product categories which have recorded growth in both value and volume terms include petroleum products, sugar, and basmati rice.“Petroleum products, including diesel, gasoline and naphtha represent an export value of USD 94 billion. The unit price rose between 50-115 per cent in one year. The high unit prices may be primarily due to the high prices of crude oil. Sugar saw a unit value increase of 15 per cent, with exports of over USD 5 billion,” it added.

It said that Gold jewelry and similar products with an export value of about USD 9 billion saw lower unit value realization in 2022. Similarly, hot rolled steel products with exports of USD 769 million in 2022 saw a decline of 26.2 per cent in unit value realization.

“Exports in 2022 saw a healthy trend with products covering 63 per cent of export value and saw an increase in the quantity of export,” the report said.

Further products where India’s exports have been traditionally strong but now feeling regulatory heat in a few countries or low global demand include shrimps, and iron-ore pellets.

“Indian rupee/US dollar exchange rate appreciated by 6.1 per cent between June 2021 and June 2022.

“This broadly explains the macro picture of why products where exports increased to cover a value of 69.8 per cent of total merchandise exports, but products whose export quantities increased merely represent 63 per cent of total exports,” it said.