{"id":34941,"date":"2023-04-14T06:50:37","date_gmt":"2023-04-14T01:20:37","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=34941"},"modified":"2025-06-30T11:14:48","modified_gmt":"2025-06-30T05:44:48","slug":"trade-statistics-of-india-for-fy-2022-23","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/trade-statistics-of-india-for-fy-2022-23\/","title":{"rendered":"Trade Statistics of India for FY 2022-23"},"content":{"rendered":"<h3><strong>What\u2019s in today\u2019s article?<\/strong><\/h3>\n<ul>\n<li><strong>Why in News?<\/strong><\/li>\n<li><strong>Exchange rate of Rupee<\/strong><\/li>\n<li><strong>Recording of Transactions<\/strong><\/li>\n<li><strong>About Current Account Balance<\/strong><\/li>\n<li><strong>India\u2019s Current Account Deficit<\/strong><\/li>\n<li><strong>Major Highlights of the Data released by the Government<\/strong><\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<h2><strong>Why in News?<\/strong><\/h2>\n<ul>\n<li>As per the data released by the Ministry of Commerce and Industry recently, India&#8217;s imports in Financial Year 2023 (FY23) rose 16.5 per cent to <strong>$714 billion<\/strong> as against $613 billion in FY22 while exports saw a rise of 6% to <strong>$447 billion<\/strong> in FY23, up from $442 billion in FY22.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Exchange rate of Rupee<\/strong><\/h2>\n<ul>\n<li>Every day, Indians and Indian entities \u2014 such as firms and governments \u2014 import foreign goods and services, export domestic goods and services, receive investments from abroad, and make investments in other countries.<\/li>\n<li>Each of these transactions involves either a demand for foreign currency \u2014 for example, you need dollars to import something from the US or to invest in one of the US stock exchanges \u2014 or a demand for Indian currency (by the same logic).<\/li>\n<li>The interplay of these transactions decides the exchange rate of the Indian rupee vis-a-vis the foreign currency (say the US dollar).<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Recording of Transactions<\/strong><\/h2>\n<ul>\n<li>A notebook, or slate or ledger that records all of the above mentioned transactions is called the <strong>Balance of Payment<\/strong> (BoP).<\/li>\n<li>The BoP has two parts \u2013\n<ul>\n<li><strong>Capital Account:<\/strong>\n<ul>\n<li>This includes all types of trading in capital.<\/li>\n<li>In other words, all investments inside and outside the country are recorded here \u2014 for example, if an Indian firm invests money in the US to build a new company there, or if an Indian buys stocks on an American exchange.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Current Account:<\/strong>\n<ul>\n<li>Here, all the trade in goods and services is noted down.<\/li>\n<li>For example, if an Indian imports an American gadget or software made by an American company or if an American entity imports Indian steel or engages an Indian IT company to create a software.<\/li>\n<\/ul>\n<\/li>\n<li><strong>The Current Account has two specific sub-parts:<\/strong>\n<ul>\n<li>Import and Export of goods \u2014 this is the \u201c<strong>trade account<\/strong>\u201d.<\/li>\n<li>Import and export of services \u2014 this is called the \u201c<strong>invisibles account<\/strong>\u201d.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>About Current Account Balance<\/strong><\/h2>\n<ul>\n<li>It is possible that a country \u2014 say India \u2014 imports more goods (everything from cars to phones to machinery to food grains etc.) than it exports.<\/li>\n<li>In such a case, it would have a \u201c<i>deficit<\/i>\u201d on its <strong>trade account<\/strong>.\n<ul>\n<li>In other words, <u>more money is going out of the country than coming in via the trade of physical goods<\/u>.<\/li>\n<\/ul>\n<\/li>\n<li>However, India could be enjoying a \u201c<i>surplus<\/i>\u201d on the <strong>invisibles account<\/strong>.\n<ul>\n<li>This may happen because its software industry is very capable, efficient and competitive, and exports lots of software solutions.<\/li>\n<\/ul>\n<\/li>\n<li>The net effect of this surplus (or deficit) on the invisibles account and the deficit (or surplus) on the trade account is called the <strong>current account balance<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>India\u2019s Current Account Deficit<\/strong><\/h2>\n<ul>\n<li>In case of India, <u>there is a huge trade deficit and a smaller surplus on the invisibles hence what we have is an overall deficit on the current account<\/u> \u2014 or Current Account Deficit.<\/li>\n<li>In essence, having a CAD or a deficit on the current account implies that, in monetary terms, <i><strong>India imports more goods and services than it exports<\/strong><\/i>.<\/li>\n<li>This, in turn, implies that the demand for the foreign currency (say the US dollar) is more than the demand for the Indian rupee.<\/li>\n<li>India\u2019s CAD stood at $18.2 billion or <strong><u>2.2 per cent of GDP<\/u><\/strong> in the quarter ended December 2022.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Major Highlights of the Data released by the Government<\/strong><\/h2>\n<ul>\n<li><strong>Exports \u2013<\/strong><\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/vajiramandravi-test.s3.us-east-1.amazonaws.com\/media\/content\/ckeditor\/2023\/04\/21\/image-20230421003829-1.png\" alt=\"\" \/>\u00a0<\/p>\n<ul>\n<li>Image Caption: Export Data for FY23\n<ul>\n<li>Total goods exports in 2022-23 rose 6.03% to $447.46 billion.<\/li>\n<li>In comparison to goods exports, services exports are estimated to have grown by 26.79 per cent.<\/li>\n<li>Overall export of goods and services together scaled &#8220;new heights&#8221; and has increased by 14 per cent to <strong>$770 billion<\/strong> in 2022-23.<\/li>\n<li>India\u2019s exports is largely led by <strong>petroleum<\/strong> ($94 billion), followed by <strong>electronic<\/strong> <strong>goods<\/strong> ($23 billion).<\/li>\n<li>The other three India\u2019s top five export items registered insignificant growth &#8211; <strong>Rice<\/strong> (up 1.5%), <strong>chemicals<\/strong> (1%), and <strong>drugs<\/strong> and <strong>pharmaceuticals<\/strong> (0.8%).<\/li>\n<li>The <strong>USA<\/strong> remained India\u2019s top export destination, followed by <strong>UAE<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Imports \u2013<\/strong>\n<ul>\n<li><i><strong>Overall imports are expected to have surged to $892.18 billion<\/strong><\/i> over the previous year.<\/li>\n<li>While <strong>petroleum<\/strong> imports jumped about 30% to nearly $210 billion in 2022-23, <strong>coal<\/strong> imports grew at a faster 57% to touch almost $50 billion.<\/li>\n<li><strong>Gold<\/strong> imports, on the other hand, fell around 24% to $35 billion as global prices for the metal surged and the Rupee turned weaker.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) What is Balance of Payment in Economics?<\/strong><\/h3>\n<p>The balance of payments summarises the economic transactions of an economy with the rest of the world. These transactions include exports and imports of goods, services and financial assets, along with transfer payments (like foreign aid).<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Q2) How much is India\u2019s Trade Deficit with China?<\/strong><\/h3>\n<p>India&#8217;s trade deficit stood at $101.02 billion for the calendar year of 2022, a sharp rise from the 2021 figure of $69.38 billion.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/www.thehindu.com\/business\/Economy\/indias-goods-exports-up-6-to-reach-44746-bn-in-2022-23-commerce-secretary\/article66732532.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>Goods exports grew 6% , imports 16.5% this fiscal<\/u><\/a>\u00a0|\u00a0<a href=\"https:\/\/indianexpress.com\/article\/business\/economy\/indias-exports-rise-record-447-billion-fy2023-8554426\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>Indian Express<\/u><\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ministry of Commerce &#038; Industry released data for Financial Year 2022-23.<\/p>\n","protected":false},"author":5,"featured_media":34942,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-34941","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/34941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=34941"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/34941\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/34942"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=34941"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=34941"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=34941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}