India’s foreign trade has witnessed a remarkable resurgence in the post-pandemic era, driven by a series of government initiatives aimed at improving ease of doing business. According to a new report by the PHD Chamber of Commerce and Industry (PHDCCI), the country’s trade surplus has expanded significantly compared to pre-pandemic levels.
The report analysed India’s trade performance with 19 regions and regional groupings, spanning three years before and after the pandemic. It found that India’s trade is now favourable with eight regions, up from six in the pre-pandemic period. This positive shift can be attributed to government measures such as improved logistics, investments in export infrastructure, and simplified tax regimes.
Sanjeev Agrawal, President of PHDCCI, highlighted the government’s proactive approach in enhancing India’s export competitiveness. He stated that the simplification of indirect taxes, single-window clearances, and reduced human interface have significantly improved the ease of doing exports.
Key findings from the report include:
- A trade surplus with eight regions, including North America, South Asia, and parts of Europe and Africa.
- A substantial reduction in the overall trade deficit.
- A transition from trade deficits to surpluses in regions like Europe and Central Asia.
The report also emphasised the need for continued efforts to reduce the cost of doing business in India to further enhance its manufacturing competitiveness in the global market.
