Indian exports set to cross $650bn in FY22 as services hit record $250bn

India exported $250 billion in services during the 2021-22 financial year in what is a record in value, commerce minister Piyush Goyal said on Wednesday, adding that the total value of goods and services export in the last fiscal is set to surpass $650 billion.

Goyal, who announced record $400 billion merchandise exports in 2021-22 about a fortnight ago on the basis of provisional data, raised the figure to over $419.5 billion on Wednesday and said a final figure for both goods and services exports may cross $650 billion mark.

The country's mercantile trade deficit has, however, increased by 55% during the period because of high prices of crude oil, metals and other inputs, in addition to inventory building by the domestic industry to pre-empt supply-chain disruptions due to the Ukraine war.

According to official data, India's merchandise trade deficit in March was $18.5 billion, while exports jumped by about 20% to $42.22 billion and imports increased 24% to $60.74 billion. While India's total exports in 2021-22 increased to record $419.65 billion, imports jumped to $611.89 billion, leaving a deficit of $192.24 billion.

The minister said the government would set new export targets for 2022-23 soon. Exports for both goods and services surpassed targets set by Prime Minister Narendra Modi because the government set ambitious but practical goals through sector-wise approach and with intense consultations with all stakeholders.