PR No – 149
29th August, 2024
New Delhi
India’s post pandemic trade with regional groupings improved significantly : PHDCCI
India’s trade is favourable with 8 regions and regional groupings in the post pandemic years as compared with 6 regions and regional groupings in the pre pandemic years, said a study conducted by PHD Research Bureau, PHDCCI, on ‘India’s Trade Patterns with Regions and Regional Groupings: A comparative study of Pre and Post Pandemic years’.
The industry body PHDCCI considered three years of pre-pandemic (FY 2018-2020) and three years of post-pandemic (FY 2022-24) to compare India’s trade performance with major regions and regional groupings in the World.
A total of 19 regions and regional groupings have been analysed in the study. India has significantly improved its exports competitiveness and connectivity with the global value chains in the post pandemic years, said the study conducted by PHDCCI.
The proactive and effective measures and policy reforms undertaken by the government including the improvement in logistics, massive investments in exports infrastructure, simplification of indirect tax regime, single window clearances, lesser human interface, have greatly enhanced the ease of doing exports, paving the way for a breakthrough in India’s foreign trade trajectory said Shri Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry in a press statement issued here today.
The trade surplus has been observed in 8 regions and regional groupings including North America, South Asia, European Countries (EU), Other European Countries, East Africa, North Africa, Central Asian Region and Central Africa in the post pandemic period as compared with 6 regions and regional groupings in the pre pandemic years including North America, South Asia, Other European Countries, East Africa, North Africa and Central Africa, said Shri Agrawal.
Notably, regions such as European Countries and Central Asian countries have transitioned from a trade deficit in pre-pandemic years to a trade surplus in the post-pandemic years, highlighting India’s potential to become a strong exporter among the major exporters in the World, said Shri Agrawal.
Remarkably, India’s exports performance has been significantly resilient in the post pandemic years as the country’s exports were all-time high year after year; USD 776 billion in 2022-23 and USD 778 billion in 2023–24, said Shri Agrawal.
The overall trade deficit has also been improved significantly to USD (-)78.1 billion in 2023-24 as compared with USD (-) 95.8 in 2018-19, said the study.
In post-pandemic years, India’s trade surplus increased from normal trade surplus to strong trade surplus with regions including North America, Other European Countries, South Asia, North Africa, and East Africa, demonstrating their relevance as major trading partners, said the study.
However, the trade surplus declined with the Central African region from pre to post pandemic years, said Shri Agrawal.
India has trade deficit with 11 regions and regional groupings in post pandemic years including, West Africa, Other South African Countries, Southern African Customs Union (SACU), Latin America, East Asia (Oceania), European Free Trade Association (EFTA), Other West Asia, ASEAN, Other CIS Countries, West Asia- GCC, and North East Asia as compared with 13 regions and regional groupings in the pre pandemic years as 2 regions including Central Asian Region and European Union Countries entered to trade surplus from deficit in the post pandemic years, he said.
Among them, the trade deficit increased with 7 regions and regional groupings including East Asia (Oceania), European Free Trade Association (EFTA), West Asia (GCC), ASEAN, Other West Asia, Other Commonwealth of Independent States (CIS) Countries and North East Asia, said Shri Agrawal.
It is worrying to note that despite our increased exports competitiveness and a free trade agreement with ASEAN countries signed in 2010, the trade deficit increased with ASEAN countries from USD 19 billion in pre pandemic years to USD 35 billion in post pandemic period, said Shri Agrawal, President, PHDCCI
On the positive side, the trade deficit narrowed with West Africa, Other South African Countries, South Africa custom Union (SACU) and Latin America in the post pandemic years, underscoring their potential in augmenting India’s exports trajectory and diversifying export destinations, said Shri Sanjeev Agrawal.
We appreciate the various initiatives undertaken by the government to boost ‘India as a Global Manufacturing and Trade Hub’, said Shri Sanjeev Agrawal.
Going forward, we need to focus more on reducing the cost of doing business including costs of capital, costs of power, costs of logistics, costs of land /availability of land, costs of labor/availability of skilled labor, and costs of compliances, to enhance the competitiveness of manufacturing in the global markets, boosting India towards its vision of USD 2 trillion exports by 2030, he said.
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Warm Regards,
Media Division
PHD Chamber of Commerce and Industry