Festive sales have lifted economy: Piyush Goyal

The economy is “bouncing back” strongly with festive sales hitting highs “not seen in a long time” and is set to record the highest-ever exports of $550 billion in 2021-22, Commerce, Industry and Textiles Minister Piyush Goyal said on Sunday.

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Merchandise exports stood at $235 billion for the first seven months of the year and are “well on track” to hit $400 billion, while Services exports are expected to go up to about $150 billion, Mr. Goyal said at the launch of the India International Trade Fair.

Job creation

“I am told several reports suggest that Diwali sales, festival sales, earlier this month, were probably the highest seen in a long time. Every statistic, be it job creation or enrolments into the Employees’ Provident Fund Organisation, reflects a broad recovery,” he said.

“The economy is bouncing back if you look at the figures in every aspect, the PMI [Purchasing Managers’ Index] for Services has hit a decade high, Manufacturing PMI is above 55. GST collections… one normally sees a spike in collections in April, because it’s the year-end, but this October, we recorded ₹1.3 lakh crore,” he said.

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“In some way, exports also reflect the growing relevance of India in the world. Collectively, we are on track for a historical high for exports of goods and services in the current year, showing how quickly the world has engaged with India, wants to deepen their engagement with India, so that they can be sure of India as a trusted partner in their supply chains and services chains.”

Alluding to the need for States to take greater interest in promoting exports, the Minister cited the example of Uttar Pradesh and said no other State has taken steps like creating a full department for export promotion.

“When you talk to other States, they say ‘Export promotion is the Centre’s role, Why should we do it?’. But Yogi Adityanath has understood that when exports are promoted, it will create jobs for people, economy will be strengthened and when domestic and export markets are combined, you get economies of scale,” he said.

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Record inflows of FDI

Record inflows of foreign direct investment demonstrate the “attraction of India” and the 14-day trade fair starting on Sunday will tell the world that “India is back in business”, Mr. Goyal said.

“The launch of this international trade fair reflects in some senses, the five Sutras of Bharat. They are Economy, Exports, Infrastructure, Demand and Diversity . How the economy has been protected by the Government, industry and people at large, and pushed it forward, is a matter of pride for us.” He said the trade fair will help combine the PM’s clarion call of “Vocal for Local” and “Local for Global”.