When it comes to merchandise related trade activities, the US has become the largest trading partner in this fiscal year.
This trade waned during the 2020-2021 fiscal year due to pandemic related restrictions and slump. But that was only a marginal drop. As per the April-October fiscal reports, there was a trade worth $67.41bn between the two nations.
US-India trade was one of the victims of the economic slump following the pandemic. This slump is part of the global supply chain crisis that has affected the economies around the world.
The new growth accounts for 11.98% of the total merchandise trade in India.
That is a sign of recovery for both economies. The US shows how the nation is managing to recover from the existing crisis, which is weighed down by inflation and the supply chain crisis.
While India shows that the government is inching forward to its target of $1trn export by 2030. For that, the government has initiated FTAs and EHAs with many economies to achieve the target. India also showed an independent voice in WTO and COP26.
This move might be seeing results as the bilateral trade between India and Australia has increased from $7.48 bn in 2020 to $13.88 bn this year.
That could also be the result of India strengthening its relations with members in the Quad, where Australia is also a member.
Also, the bilateral trade between India and UAE increased from $29.48 bn in 2020 to $49.06 bn this year. Once again, the hike could be the result of the optimism generated by the meeting between the two nations to formulate and sign CEPA.
Even the trade with Belgium has increased from $7.63 bn in 2020 to $ 13.70 bn by this year. Belgium is the largest trade partner with India in the EU with imports focusing on metals, precious stones, diamonds and jewellery.
The share of goods and service export in GDP has increased from 18.4% in 2019-2020 to 21.7% in 2021-2022. It faced a slight dip of 19.4% in 2020-2021. The import of pulses dipped from 28,98,078 tons to 24,66,156 tons this fiscal year.
Merchandise Exports from India Scheme or MEIS is an incentive scheme for the export goods, where the government gives duty credit scripts to the exporters. The export items should be those manufactured and exported from India.
As of now, 97.3% of the applications of 2020-2021 has been issued with the scripts. Only 2.7% remains to be qualified, which is under various stages of approval. These applications require manual examinations as they are from non-EDI ports.