India's total exports during FY22 are expected to grow by 16.5 per cent, thereby surpassing the pre-pandemic levels, the Economic Survey tabled in the Parliament on Monday said.
India's exports of both goods and services have been exceptionally strong so far in 2021-22.
Merchandise exports have been above $30 billion for eight consecutive months in FY22, despite a rise in trade costs arising from global supply constraints such as fewer operational shipping vessels, exogenous events such as blockage of Suez Canal and Covid-19 outbreak.
Also, net services exports rose sharply, driven by professional and management consulting services, audio visual and related services, freight transport services, telecommunications, computer and information services.
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"Imports also recovered strongly with revival of domestic demand and continuous rise in price of imported crude and metals. Imports are expected to grow by 29.4 per cent in 2021-22 surpassing corresponding pre-pandemic levels," the Survey said.
Resultantly, India's net exports have turned negative in the first half of FY22, compared to a surplus in the corresponding period of the previous fiscal.
"However, robust capital flows in the form of continued inflow of foreign investment were sufficient to finance the modest current account deficit."
During the second half of the fiscal year, the elevated global commodity prices, revival in real economic activity driving higher domestic demand as well as growing uncertainty surrounding capital inflows may widen current account deficit further.
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However, the Survey said it is expected to be within "manageable limits".
