Indian exports: On a strong footing

Indian exports have shown strong signs of recovery over the past few months. Continuing the strong double digit growth trajectory from February 2017, Indian exports registered a significant growth of 27.59 per cent in March 2017 at US$ 29.23 billion as compared to US$ 22.91 billion during the same period last year. The total exports during April-March for FY 2016-17 stood at US$ 274.64 billion (INR 1,841,314.39 crore) as against US$ 262.29 billion (INR 1,716,377.99 crore) in the previous fiscal, registering a positive growth of 4.71 per cent in dollar terms and positive growth of 7.28 per cent in INR terms. Market watchers believe that Indian exports have been through the lean phase and are all set to touch new benchmarks in the coming months.

Key initiatives announced in the Union Budget 2017-18 are also expected to support the growth of Indian exports. For instance, announcements like a new and restructured Central scheme with a focus on export infrastructure, namely, Trade Infrastructure for Export Scheme (TIES), modernisation and upgradation of identified corridors and railway lines & making the MSMEs more competitive by reducing income tax rates are expected to further boost the growth of Indian exports in the current fiscal. The Trade Infrastructure for Export Scheme is focused on addressing the needs of the exporters with an intent to not just to create infrastructure but to ensure that it is professionally run and sustained.

It is expected that the various policy initiatives of the Foreign Trade Policy and the activities under the Make in India initiative will continue to support the growth of Indian exports in the current fiscal. In addition, recovery of the global economy and positive indicators recorded in the recent times are further adding to the optimism of the Indian exporters.