Last updated: Jul, 2020
The integration of domestic economy through the twin channels of trade and capital flows has seen acceleration over the last two decades as India’s GDP reached Rs 203.39 lakh crore (US$ 2.88 trillion) in 2019-20*. Simultaneously, the per capita income also nearly trebled during these years. India’s trade and external sector had a significant impact on the GDP growth as well as expansion in per capita income.
Total export from India (Merchandise and Services) stood at US$ 528.45 billion in 2019-20, while total import was estimated at US$ 598.61 billion according to data from the Ministry of Commerce and Industry. Merchandise export stood at US$ 314.31 billion in 2019-20, while merchandise import touched US$ 467.19 billion in the same period. The estimated value of services export and import for 2019-20 stood at US$ 214.14 billion and US$ 131.41 billion, respectively.
In 2020-21 (till June 2020), total export from India (Merchandise and Services) stood at US$ 101.02 billion, while total import was estimated at US$ 89.31 billion according to data from the Ministry of Commerce and Industry. India registered a trade surplus of US$ 11.70 billion for the first time in almost 18 years.
According to Mr Piyush Goyal, Minister for Commerce and Industry & Railways, the Government of India is keen to grow export and provide more jobs for young, talented, and well-educated people as well as for semi-skilled and unskilled workforce in India.
India's foreign exchange reserve was Rs 38.83 lakh crore (US$ 516.36 billion) in the week up to July 10, 2020 according to data from the RBI.
Foreign Trade Policy
India is presently known as one of the most important players in the global economic landscape. Its trade policies, Government reforms and inherent economic strengths has attributed to its standing as one of the most sought-after destination for foreign investments in the world. Also, technological, and infrastructural development being carried out across the country augurs well for the trade and economic sector in the years to come.
The Government of India has been working on striking important deals with the Governments of Japan, Australia, and China to increase contribution towards the economic development of the country and growth in the global market.
India has a potential to increase its goods and services export to Australia to US$ 15 billion by 2025 and US$ 35 billion by 2035.
*Provisional estimates at current prices
Note: Conversion rate used in April 2020, Rs 1 = US$ 0.0131
Last Updated: July 28, 2020