India's Exports From SEZs Up 4% To $163.69 Bn In 2023-24

The exports from special economic zones (SEZs) from 2023-24 rose over 4 per cent to USD 163.69 billion. Last fiscal year, exports from these zones had dipped over 3 per cent. According to the data from the commerce ministry, shipments from SEZs in 2022-23 stood at USD 157.24 billion and in 2021-22 at USD 133 billion.

For India, SEZs are important hubs of export, contributing to over one-third of the country's total exports in the previous fiscal year. In March 2024, the government approved about 423 SEZs out of which 280 are operational. Till 31 December 2023, about 5,711 units are approved in these zones.

As per data on 31 December, more than Rs 6.92 lakh crore was invested in these zones and 30.70 lakh people have been employed there. Notably, the United Arab Emirates, the US, the UK, Australia and Singapore are major export destinations included here.

The think tank Global Trade Research Initiative (GTRI) suggested that in the domestic market on payment of duty foregone on inputs, the government should allow the sale of products manufactured in these zones to help promote value addition according to a report.

On payment of duties according to finished goods, now SEZs can sell products in DTA. Notably, India's merchandise exports surged by 1.07 per cent to nearly USD 35 billion in April, despite global market uncertainties stemming from economic slowdowns and geopolitical tensions, as per data from the Union Commerce Ministry released on Wednesday. However, imports saw a significant increase of 10.25 per cent during the same period, reaching USD 54.1 billion, primarily due to heightened gold purchases.

Merchandise export growth in April 2024 was driven by petroleum products, organic and inorganic chemicals and pharmaceutical goods. Among goods exports, 13 out of 30 principal commodities have recorded positive year-on-year growth, while exports of 17 commodities have declined year-on-year. Although India's overall goods export may have seen a marginal increase, the combined exports of 23 commodities, including agro-related and labour-intensive principal commodities, have declined by 3.6 per cent, dropping from USD 10 billion to USD 9.6 billion.

However, the merchandise trade deficit has surged significantly by 32.3 per cent year-on-year, escalating from USD 14.4 billion to USD 19.1 billion, primarily due to a sharp increase in oil imports. This upsurge in oil imports is attributed to the heightened international prices of the Indian basket oil, which, according to the Petroleum Planning and Analysis Cell, has increased by 7 per cent year-on-year for April.