Despite Covid-19, turbulent geopolitical situation, India's exports remain robust: RBI

“External demand remained buoyant, with merchandise exports clocking double digit growth for the thirteenth month in a row in March 2022, '' Das said during RBI’s bi-monthly monetary policy review held on April 8.

However, with the expansion in imports outpacing exports, the trade deficit widened in H2.

However, with the growth in imports outpacing exports, the trade deficit widened in H2.

Merchandise imports reached an all-time high of $ 60.3 billion in December 2021 and topped $ 50 billion for the seventh month in a row in March 2022.

“Despite the worsening global supply shocks slowing the recovery in the world economy, India’s merchandise exports grew robustly in 2021-22 overshooting the target of $400 billion. Imports have strongly rebounded too. We expect Current Account Deficit to remain at sustainable levels,” he said.

India’s exports crossed $400 billion in 2021-22, clocking 37 percent growth over exports of $291 billion in FY21.

The government said that petroleum products, engineering goods and gems and jewellery were the top sectors that accounted for half of India's merchandise exports.

Das warned that the intensification of geopolitical tensions, the jump in global oil and commodity prices to multi-year highs, and intense financial market volatility have created downside risks to global economic activities and could negatively impact domestic growth.

"The Ukraine-Russia war could potentially impede the economic recovery through elevated commodity prices and global spillover challenges. Concerns over protracted supply chain disruptions have rattled commodities and financial markets," he added.