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Data: Electric Vehicle registrations have increased over the year, but still account for only 1% of the overall numbers
Sai Krishna Muthyanolla
June 24, 2021
The Union Government recently increased the subsidy on electric 2-wheelers from Rs. 10,000 per KWh to Rs. 15,000 per kWh with an increased cap of 40% of the cost. Whether the increased subsidies spur sales in the electric segment remains to be seen. Here is a review of the numbers.
Recently, the Ministry of Heavy Industries and Public Enterprises announced revised subsidy rates for electric bikes and scooters in India under the new Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) scheme which is known as the FAME-II Scheme. The scheme is aimed at promoting faster adoption and manufacturing of electric vehicles in the country. This announcement comes at a time when the country has started recovering from the second wave of the coronavirus pandemic with states gradually relaxing the lockdown restrictions. Both the first wave and second wave of the pandemic hit vehicle sales in the country. In this context, we look at the progress under the FAME Scheme so far and analyse the trends in the sale of electric vehicles in the country.
Countries are shifting to cleaner fuels
Across the globe, the past decade has witnessed the beginning of countries shifting from internal combustion engine (ICE) vehicles which are primarily dependent on fossil fuels to cleaner fuels. The beginning of this shift is following concerns over climate change, increase in energy costs, pollution, and depletion of fossil fuels. Electric mobility is considered a viable alternative to ICE which addresses economic challenges, rising urbanization, travel demand, and India’s energy security. However, these are still early days, and the adoption has been slow. The advent of appropriate technology, creation of adequate support infrastructure and introduction of innovative pricing solutions are necessary to boost electric mobility in India.
Phase I and II of FAME Scheme have been rolled out under NEMMP 2020
In 2012, the Union Government released the National Electric Mobility Mission Plan (NEMMP) 2020, the National Mission document providing the vision and the roadmap for the faster adoption of electric vehicles and their manufacturing in the country. The plan envisioned that by 2020, India would have a fleet of 6 to 7 million electric and hybrid vehicles. As part of the NEMMP 2020, the Department of Heavy Industry formulated the FAME India Scheme in the year 2015 to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same. The Phase-I of the FAME India Scheme was initially launched for a period of 2 years, commencing from 01 April 2015, which was subsequently extended from time to time and the last extension was allowed up to 31 March 2019 with the total outlay of Rs. 895 crores.
From 01 April 2019, with total budgetary support of Rs. 10,000 crores, the Union Government notified Phase-II of FAME India Scheme. While the first phase was focused on Demand Creation, Technology Platform, Pilot Project, and Charging Infrastructure, the second phase mainly focuses on supporting electrification of public and shared transportation and aims to support, through demand incentive, about 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers.
In the first phase of the scheme, about 2.8 lakh hybrid and electric vehicles were supported by way of demand incentives. Under Phase-II of the FAME India Scheme, about 77,680 Electric Vehicles have been supported as of 23 June 2021, as per the data on the Ministry’s website.
VAHAN dashboard provides data on electric vehicles registrations
The VAHAN dashboard provides data on the registration of vehicles from across the country including electric vehicles. Maintained by the Ministry of Road Transport & Highways (MoRTH), the VAHAN dashboard is a centralized database of registration of vehicles in 33 out of 37 states/UTs which are enrolled in VAHAN 4.0. The figures from Andhra Pradesh, Telangana, Lakshadweep, and Madhya Pradesh are not included here. The figures pertain to 1294 RTOs of the total 1497 RTOs in the country.
Electric vehicle registrations increased, but still very meagre of the overall numbers
Data from the VAHAN dashboard reveals that there has been a considerable increase in the number of electric vehicles registered in India since 2012. From less than 6,000 electric vehicles registered in 2012, the number dropped to less than half (2,433) electric vehicles in 2014. However, in 2015, the number of electric vehicles registered crossed 9,000 following the launch of the first phase of the FAME scheme. In the following year 2016, electric vehicle registration increased by nearly 5.7 times, crossing the 50,000 mark.
Since then, the registration of electric vehicles witnessed a steady growth up to 2019. In the four years between 2016 and 2019, the registration of electric vehicles tripled from 51,129 to more than 1.61 lakh vehicles. However, in 2020, the number dropped to 1.19 lakh electric vehicles, the lowest since 2018, indicating the impact of the COVID-19 pandemic. In 2021, as of 23 June 2020, more than 85,000 electric vehicles have been registered in India.
While the increase in numbers may be a positive sign, the electric vehicle numbers pale in insignificance when compared to overall vehicle registrations in the country. In 2019, the overall vehicle registrations in the country were over 2 crores while in 2020, it was more than 1.63 crores. In each of these two years, the number of electric vehicle registrations was less than 1% of all the vehicle registrations in India.
COVID-19 has affected the sales
The registration of electric vehicles in the months of April and May for both 2020 & 2021 indicate that the pandemic affected the sale of electric vehicles as well as it did with the entire automobile sector.  Between 2017 and 2019, it is observed that there has been some sort of uniformity or a slight month-on-month increase/decrease in the registration of electric vehicles in the months from March to May. However, in 2020, the registrations dropped by 5.4% in March, 91.5% in April, and 87% in May. It was only in February 2021 that the registrations recovered and reached pre-COVID-19 levels. In March 2021, the number of registrations of electric vehicles reached a record 26,078 vehicles. However, in May 2021, the number dropped to 3310, the second-lowest monthly figure since 2017. Almost all the states in India went into localized lockdowns in May 2021 as the second wave of infections surged and the impact of such lockdowns was clearly visible even on the registration of electric vehicles.
2 & 3 Wheelers account for lion’s share of electric vehicles sold
Two-wheeler and three-wheeler electric vehicles account for lion’s share of electric vehicles registered in the country. Since 2016, these two categories constituted at least 96% of the electric vehicles registered in India. The categorization used here is as follows-
In 2019, both categories constituted almost 99% of all-electric vehicles registered. The numbers indicate that the registration of electric three-wheelers, which touched a record 1.3 lakhs in 2019 dropped by 33% in 2020. In the case of two-wheelers, the registrations had dropped by only 1.7% in 2020 as compared to 2019. As of 23 June 2021, the number of two-wheeler electric vehicles registered in 2021 has already surpassed the 2019 and 2020 levels. The registration of four-wheelers has also been increasing, though their share is low.
Three states account for 55% of electric vehicles registered since 2017
Between 01 January 2017 and 23 June 2021, over 5.85 lakh electric vehicles were registered in India and more than 2 lakh of those were registered in Uttar Pradesh (UP). The states of UP, Delhi, and Bihar alone account for more than 55% of the electric vehicles registered since 2017. More than 10,000 electric vehicles each were registered in 11 States/UTs during this period.
Like the overall trend, most states including UP, Bihar, West Bengal, Assam, Maharashtra, and Rajasthan reported a drop in registrations in 2020 following a continuous increase up to 2019. On the other hand, the states of Tamil Nadu, Karnataka, Tripura, Gujarat, and Kerala continued to report more registrations in 2020 than in 2019. Tamil Nadu has already registered more than 10,000 vehicles in 2021, almost twice the number in 2020. Gujarat and Kerala also have registered more electric vehicles in the first six months of 2021 than in the entire 2020. This varying trend across states is influenced by the respective states’ electric vehicle policies. For instance, the Delhi government offers a purchase incentive of up to Rs. 30,000/- per vehicle to the registered owner and Tamil Nadu offers 100% road tax exemption till 30 December 2022 in addition to waiver on registration charges.
New revised subsidy has been announced to boost sales
As COVID-19 has disrupted the entire automobile sector, it will be too early to assess the outcome of phase-2 of the FAME scheme and if it boosted sales. However, the goals under NEMMP 2020 have not been achieved yet.
Electric vehicles are expensive compared to traditional ICE vehicles and hence financial incentives are necessary to attract buyers. The revised subsidy under FAME-II for electric two-wheelers is Rs. 15,000 per KWh with an increased cap of 40% of the cost, up from Rs. 10,000 per kWh.
With lockdown restrictions being relaxed and economic activities resuming, it is anticipated that the demand for personal vehicles will increase. More people may want to avoid public transportation to avoid the risk of infection and the new increased subsidy can persuade people to purchase electric vehicles.
Many challenges remain
While the increase in subsidy may encourage sales, there are many challenges that need to be addressed such as the high cost of batteries, improvement of the battery technology, availability of raw materials, and electricity tariff policies. Accessibility of charging stations, availability of charging infrastructure, charging times will also play a significant role in the uptake of electric vehicles. While the financial incentives are necessary, they may not be sufficient to rapidly increase the electric vehicle adoption numbers unless all the challenges are parallelly addressed.
Featured Image: Electric Vehicle Registrations in India


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Engineers make up for more than 60% of final merit list of the Civil Service Examination
Sai Krishna Muthyanolla
June 16, 2022
Analysis of the data from the UPSC annual reports indicates that the share of engineering degree holders in the final merit list of the Civil Services Examination (CSE) has increased from 31% in 2009 to 63% in 2019. During the same period, the share of candidates with a humanities education background decreased from 44% to 24%. Here is a detailed analysis of the CSE data.
The Union Public Service Commission’s (UPSC) Civil Services Exam (CSE) is undoubtedly the most demanding and sought-after exam in the country. It is the primary mode of recruitment for the positions of civil services both in the Government of India & in State governments. Around thousand vacancies are filled every year, including the much-coveted services like the Indian Administrative Services (IAS), Indian Police Services (IPS), and Indian Foreign Services (IFS). Usually conducted in three phases, the entire examination process and its selection require candidates to undergo more than 30 hours of rigorous testing.
The examination had undergone many changes since its inception. These changes are mostly in the pattern of examination, and a few modifications to the syllabus. Along with the changes in examinations, there are some patterns in the results of the examination. Today’s story looks at the emerging trends and similarities in the examination results. Factly’s earlier story on the trends in UPSC CSE examination till 2013 can be read here.
Caution must be exercised in interpreting these trends as a standard norm as it is possible that these trends are merely coincidental.
Changes in the UPSC examination
No examination is devoid of changes in its recruitment process. The changes could be in the form of examination pattern, syllabus, mode of examination, and eligibility criteria among other things. UPSC’s CSE had also undergone some key changes over the years. The latest change is in 2020 when the UPSC allowed candidates to withdraw their applications. This is done to ease the burden of resources incurred by the UPSC in the examination process and to provide better quality examination centres for candidates. Below is a brief timeline-based overview of the changes to the UPSC CSE examination.
Higher degrees triumph bachelor’s degree in educational background of selected students
Data of the success rate in conversion between the interview & final merit list by education background indicates that candidates with higher degrees have a better success rate than the ones with a bachelor’s degree. From 2012 to 2017, the gap between the success rates between these two is not so significant, whereas, in 2018 & 2019, the divergence in the success rate of these educational backgrounds is more evident.
Candidates with engineering backgrounds overpower other streams in the final selection
We have earlier noted that candidates with higher degrees have a better success rate than those with bachelor’s degrees. Further breaking this down into four major disciplines: engineering, humanities, sciences, and medical science, it is found that candidates from engineering disciplines dominate the final merit list. They account for more than 50% of the final selected candidates, and this share has crossed 60% in recent years. It is also evident that the composition of candidates from other disciplines has also been declining consistently, with humanities dropping from 44% in 2009 to 24% in 2019, medical sciences from 12% to 6% and Sciences from 13% to 7% during the same period. These trends could point out that the service’s recruitment has become more tilted towards technocratic capabilities.
Engineering background dominates in the final selection, but those with a humanities background are better at conversion
Data on the conversion rate of those who attended the interview and those in the final merit list indicates that it is better for humanities than the rest of the disciplines. Barring 2012 & 2013, the conversion rate for candidates with an engineering background has been declining. Similar is the case for medical sciences, except for 2015 and 2016. Candidates with a science background also have shown improvement in their conversion probability in 2019 when compared to 2012. Those with a humanities background have the best conversion rate with more than 40% in recent years.
Female candidates have a better conversion rate than male candidates
If the conversion rate is considered from a gender lens (from interview to the merit list), it is found that female candidates have a better conversion rate than their male counterparts from the interview to merit list stage. The conversion rate of female candidates is around 50% while that of male candidates stands at 36%. This essentially means that 2 in 4 female candidates get selected, while approximately 2 out of 6 candidates get selected among males. The trend from 2009 has been the same, however, the difference in the conversion rates is reducing, from 21 in 2006 to 10 in 2019. The same trend is also be seen in terms of conversion from appearance in mains examination to interview shortlist.
Humanities as an optional category are the most preferred
The UPSC in its annual report, categorizes all the optional subjects into five categories, as below.
As an overall figure, Humanities still hold an upper hand in the candidates’ preferences and their success rate in any particular year. More than 75% of the recommended candidates have Humanities-A and Humanities-B as their optional categories. It is strange that while candidates with engineering backgrounds dominate in the final selection, their preferred optional categories turn out to be Humanities A & B.
If we look at the cumulative data from 2013 to 2019, the success rate for the Medical Sciences category, with 15.2%, is higher than all the other categories. It is followed by Sciences and Humanities-B at 8.6%, Languages at 8.4%, and Engineering at 8.5% and Humanities-A at 7.3%. If we look at the year-on-year success rate trends in these categories, it is observed that there is a marginal improvement in the success rate of candidates with Engineering and Sciences as their optional categories, while Humanities A and Medical Sciences show a slight decline.
Subjects in Humanities-B have a better success rate than Humanities A
Data clearly indicates that candidates tend to prefer humanities and the success rate is also higher in humanities. Further analysis of the data indicates that the subjects from the humanities-B category like Economics, Law, Management, Commerce and Accountancy have a better success rate when compared to the subjects in the humanities-A category. However, the success rates of subjects like Law and Management have been showing a declining trend over the period. Subjects like Sociology, Geography, History, Political Science, and International Relations (PSIR) are maintaining an approximately stable trend in success rate.
Featured Image: Civil Service Examination

source: news-factly

license: Creative Commons - Attribution - https://creativecommons.org/licenses/by/4.0/

author: Sai Krishna Muthyanolla


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Enrolment in B.Tech and M.Tech programmes see fall in the last 5 years
Sai Krishna Muthyanolla
July 3, 2021
The AISHE report for 2019-20 confirms the earlier trends of decreasing enrolment in Engineering courses and the corresponding increase in other courses. While overall enrolment in both UG & PG courses increased by over 10% in the last five years, the enrolment in engineering courses fell by more than 10%.
In continuation of our previous stories on the All India Survey on Higher Education Survey (AISHE), we look at enrolment trends in important programmes at the undergraduate and postgraduate levels over the last 5 years.
The enrolment trends in undergraduate and postgraduate programmes reveal that engineering, which was once a sought-after course is witnessing a continuous decrease in enrolment to the extent that the enrolment is down by more than 13% for undergraduate and 34% for postgraduate programmes in the last 5 years.
Undergraduate enrolment declines in engineering courses and increases steeply in Science and Medical courses
According to AISHE Survey 2019-20, about 80% of students are enrolled in undergraduate level programmes, as elaborated in our previous story. This means that enrolment trends in undergraduate programmes represent an important trend in higher education in India.
Over the past 5 years, the trend in student enrolment at undergraduate programmes reveals the following:
While enrolment in undergraduate engineering courses fell, programmes like B.B.A, M.B.B.S, B.Pharm., and B.Sc. saw their enrolment increase by more than 50%. The enrolment in B.Ed. more than doubled over the last 5 years and tops the list of courses in terms of increase in enrolment.  Undergraduate programmes in law, commerce, computer, and science continues to attract student enrolments.
Postgraduate enrolment in engineering registers significant decline and continues to increase for Science and Commerce courses
According to the data released by AISHE Survey 2019-20, about 11% of students in higher education are enrolled in postgraduate courses. Over the past 5 years, the trend in student enrolment at postgraduate programmes reveals the following:
Students pursuing a master’s degree in engineering (M.Tech.) have decreased by 34% in the last five years alone, while students pursuing an undergraduate degree in engineering (B.Tech. and BE) fell by 13% in the same period. This slackening of interest in engineering comes at a time when student enrolment in higher education is at an all-time high of 38.5 million, as compared to 37.4 million the year before.
Waning popularity of engineering courses in India attributed to low demand and employability
The waning popularity of engineering courses also attributed to the reducing demand for these courses. One of the earlier stories elaborates how there has been a steep fall in the number of engineering institutes since 2015, amidst the All India Council for Technical Education’s (AICTE) decision of not approving new colleges for engineering from 2020 on account of more than half the engineering seats falling vacant every year. This recommendation to stop setting up new colleges from 2020 and review the creation of new capacity every two years after that was provided by a government committee, headed by IIT-Hyderabad chairman B V R Mohan Reddy.
The number of engineering institutes decreased in the North-West region (Delhi, Haryana Punjab, Rajasthan, etc.), South Central region (Andhra Pradesh & Telangana), and the Western region (Maharashtra & Goa). Meanwhile, in Eastern (West Bengal, Odisha, NE States, Jharkhand) and Northern regions (Uttar Pradesh, Bihar & Uttarakhand), there is a stark increase in the engineering institutes. The other regions witnessed only a slight decrease.
According to an AICTE report on Engineering Education in India, the low enrolment, low placements, and low employability of engineering graduates are causes for concern. The report recommends intervention and modifications to reforms the status of engineering education in the country.
The fifth edition of the National Employability Report 2019 by SHL finds that the employability of Indian engineers has not changed on an aggregate level since 2010. The report is a first of its kind in quantitatively exploring the reasons for low employability and makes detailed recommendations for change. The report compared the skills of Indian engineers with those in other countries and also looked into whether Indian engineers are acquiring new-age skills in areas like AI, mobile, cloud, and web. Some of the major highlights of the 2019 report are:
Another report on State-Wise Employability of Engineers in India 2019 reveals that while engineering education in India has scaled over the last two decades producing over half a million engineering graduates annually, there has been a drop in the percentage of employability of engineers across different states for different sectors. The report also finds a correlation between the sheer number of engineering colleges in a state influences the percent employability of students in the state, establishing that opening more engineering colleges shall not solve the problem of the quality of engineers in the country.
All the numbers discussed above – reduction in enrolment and number of colleges, point towards the decreasing demand for engineering- which was once the most sought-after course in India. At the same time, there have been a significant increase in Science, Medical and Commerce courses.
Featured Image: AISHE Survey


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Data: Enrolment in Government Schools Increases while it Decreases in Private Schools in the Aftermath of COVID-19
Sai Krishna Muthyanolla
November 24, 2022
The COVID-19 pandemic triggered a shift in the education sector as it was one of the most affected. Data indicates a significant positive shift in enrolment in government schools while it decreased in private schools reversing a pre-pandemic trend. The trend was visible across states in varying degrees.
The size of the Indian education system is enormous, the system caters to around 27 crore students from pre-primary to higher secondary levels, with over 95 lakh teachers in around 15 lakh schools. While the education system is meant to standardize and maintain uniformity across the nation, it also provides ample space for culture and diversity to flourish.
The Unified District Information System for Education (UDISE), now remodelled as UDISE+, is a comprehensive database of metrics on the Indian education system. UDISE came into being in 2012-13, while the remodelled UDISE+ was launched in 2018-19. The latest report, UDISE+ 2021-22, was published recently.
This is a two-part series on UDISE+ 2021-22 to understand the impact of the COVID-19 pandemic on the education system. The first part focuses on aspects of school profiles and enrolment trends, and the second part looks at infrastructural aspects and performance indicators.
Decline in the total number of schools
The total number of schools in India stands at 14,89,115 as per the UDISE+ 2021-22 report. This was 15,16,892 during 2014-15, further growing up to 15,58,903 in 2017-18. From 2017-18, the decline has been consistent, except in 2020-21 when there was a minor increase. The decline in the number of schools is 1.33% compared to figures for 2020-21, and 4.5% compared with 2017-18 figures.
In terms of school management, Government schools showed a consistent decline from 11,07,118 in 2014-15 to 10,22,386 in 2021-22. This is not the case with Government aided and Private Unaided schools. Government-aided schools rose from 83,042 in 2014-15 to 84,623 in 2018-19, after which it fell to 82,480 in 2021-22. Similarly, the Private unaided schools grew from 2,88,164 in 2014-15 to 34,33,14 in 2020-21, after which it declined to 33,58,44 in 2021-22.
While the government schools fell by 0.95%, Government aided schools grew by 0.97% from 2020-21. Private unaided schools declined by 2.18% during the same period, possibly because of COVID-19.
The percentage changes in the number of schools are as below.
It is evident that Private unaided schools majorly bore the brunt of the COVID-19 pandemic, with many schools either closing or halting operations. The decline in government schools could be due to the rationalization of schools according to the teacher-student ratios.
Enrolment in Government Schools better than private Schools
The primary aim of any education system is to ensure that all children of suitable age are enrolled in school and are attending. Achieving Universal participation of children in schooling is the core focus of the governments.
The data from 2014-15 to 2021-22 reveals that the enrolment in Government Schools fell from 14.41 crores in 2014-15 to 13.09 crores in 2019-20. In percentage terms, it amounts to a more than a 9% decline in enrolment. However, for 2020-21, and 2021-22, the enrolment in Government schools has increased, with 13.49 crores enrolled in 2020-21, and 14.32 crores in 2021-22.
For the Government-aided, the enrolment fell from 3.01 crores in 2014-15 to 2.68 crores in 2020-21, registering a decline of 11%. In 2021-22, the enrolment slightly improved by 0.7% to 2.70 crores.  For Private unaided schools, the enrolment rose from 7.92 crores in 2014-15 to 9.82 crores in 2019-20, marking an increase of 24%. However, for 2020-21, and 2021-22, the enrolment fell to 9.51 crores, and 8.82 crores respectively.
If we look at the share of each type of management in the total enrolment, the share of government schools fell from 55.5% in 2014-15 to 50.46% in 2019-20, while again improving to 55.20% in 2021-22. Similarly, for private unaided schools, the share increased from 30.5% in 2014-15 to 37.85% in 2019-20, before declining to 34.02% in 2021-22.
Overall, the percentage changes in the enrolment figures are as below.
It is clear from the data that there is a clear reversal in the enrolment pattern, with students opting for government schools to private schools. The pandemic has forced many families to switch their children from private schools to government schools, owing to financial difficulties.
Similar shift in enrolment pattern across the states
Data indicates a positive shift in enrolment in government schools, while the opposite is true for private unaided schools. At an all-India level, this shift is 9.4% for government schools, whereas, for private schools, it is -10.12% between 2019-20 and 2021-22. This shift is observed in almost all major states, though in varied proportions. The shift is calculated as the difference between the figures of 2019-20 and 2021-22.
In terms of a positive shift in enrolment towards government schools, Haryana tops with 22%, followed by Telangana at 16.42%, Rajasthan at 16.32%, and Andhra Pradesh at 16.17%. Uttarakhand, Maharashtra, and Madhya Pradesh showed the least shift, with 4.18%, 3.66%, and 3.40% respectively.
In terms of a negative shift in enrolment from private schools, West Bengal stood at the top with 23%, followed by Tamil Nadu and Andhra Pradesh at 18.5%, and 17.1% respectively. Uttar Pradesh, Jharkhand, and Bihar registered the least negative shift, with 4.41%, 4.35%, and 1.32% respectively. Only Odisha performed negatively in both government and private school enrolments among major states.
In states where the shift in enrolment from private schools did not translate into equivalent enrolment shifts in government schools, it can be assumed that students dropped off from school education instead of switching. For states where the shift in Government school enrolment is greater than the shift in enrolment from private schools, measures by respective governments to improve and support the public education system might have helped to maintain such a shift.
What about the trend before the pandemic?
It is evident that enrolment in private schools rose till the onset of the pandemic, and the pandemic caused this trend to reverse. The opposite is true for Government schools. However, this was not the same in terms of educational levels and type of school management if data from 2017-18 is considered.
From 2017-18 to 2019-20
For government schools, the enrolment at the primary level fell by 4.33%, while that of upper primary and higher secondary fell by 3.92% and 3.27% respectively. Only the secondary level showed an increase of 5.74%.
For Government aided schools, the enrolment at all levels declined, with primary, upper primary, secondary, and higher secondary registering 3.85%, 4.38%, 1.85%, and 3.78% respectively.
For Private unaided schools, the enrolment at all levels increased, with primary, upper primary, secondary, and higher secondary registering 8.13%, 6.80%, 10.44%, and 6.76% respectively.
From 2019-20 to 2021-22
For government schools, the enrolment at all levels increased, with primary, upper primary, secondary, and higher secondary registering 9.47%, 8.74%, 4.33%, and 23.8% respectively.
For Government aided schools, enrolment at all levels except higher secondary level declined. The percentage decline in the primary level is 3.32%, the upper primary is 4.17%, and the secondary is 1.89%. Only the higher secondary level showed improvement by 4.94%.
For Private unaided schools, enrolment at all levels except higher secondary level declined. The percentage decline in the primary level is 11.85%, the upper primary is 3.92%, and the secondary is 3.83%. Only the higher secondary level showed improvement by 0.93%.
Featured Image: Enrolment in Schools

created: November 24, 2022


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European Countries report a high Case Positivity Rate during the Second wave of COVID-19
Sai Krishna Muthyanolla
November 26, 2020
The European countries & the USA are currently experiencing a second wave of COVID-19. The number of daily cases being reported in each of these countries is way more than the numbers reported during the peak of the first wave. Along with increased testing, the Case Positivity Rates have also increased.
Few days ago, United Kingdom announced the phasing out of its month long lockdown which was in effect since the beginning of this month. The lockdown was announced as a response to the increase in the number of COVID-19 cases in the country.
Apart from UK, few other European countries have seen an increase in the number of COVID-19 cases being reported over the last month or so. These countries were among those which were the earliest ones to be hit by the COVID-19 pandemic earlier this year. Since then, the situation was brought under control and they are not witnessing a spike in the cases in the past couple of months. This is being considered as a second wave of the COVID-19 pandemic.
Over the past couple of months, while the buzz in USA has been around US presidential elections, there has also been an increase in the number of COVID-19 cases being reported.
In this story, we look at the trends relating to the second wave of COVID-19 infection across Europe & USA and ascertain the possible scenario in context of India.
We have considered the data provided on Our World In Data portal, where the information is collated based on the data provided by authentic & reliable sources of each country.
Number of cases significantly higher in the 2nd wave across Europe & USA
Western European countries were among the first to be hit with a higher number reported cases of COVID-19 outside of China.  Italy breached one thousand cases a day mark ( a high number in the initial days of COVID-19 pandemic) during the first week of March 2020 and peaked to around 5– 6 thousand daily cases by the last week of March 2020. The numbers fell gradually during April and by May, less than 1000 cases a day were reported. A similar trend was observed in other countries like Spain, UK, France and Germany where in significant numbers were reported during the first week of March with the daily numbers peaking during early April, followed by a gradual decline.
Post May, the number of daily cases largely subsided in these countries. The quantum of the numbers differ among these countries but the trends remained the same.
However, by Mid-July, Spain followed by France started to report higher number of daily COVID-19 cases, with the numbers peaking by the end of October & early November, indicating a second wave of COVID-19. The increase in the number of daily cases started comparatively late in UK, Italy & Germany. The number peaked in these countries during early November. The important aspect of the second wave is that  significantly greater number of are reported from each of these countries compared to that of first wave.
For instance, the highest number of cases recorded in Italy, Spain & France during the peak of first wave was around 5-6 thousand daily cases. However, during the second wave, the numbers range between 40-60 thousand daily cases during the peak period i.e. approximately 10 times more daily cases than during the peak period of the first wave.
Russia’s trajectory is different from the other countries. After peaking late than the other countries, the drop has also not been as significant as in the case of others. The second wave is also a gradual increase than the sudden spike observed in the other countries.
Over the past week however, there has been a steady decrease in the number of new daily cases reported from Spain, Italy, France & Germany.
Meanwhile in USA, the number of new daily cases being reported over the past two weeks are consistently over one Lakh. During the first wave of COVID-19, the number of daily cases in the USA peaked around mid-July with 60-70 thousand daily cases. This was after a gradual growth of higher number of cases being reported since the end of March’2020.
The peak was followed by a short period of decline, where in by mid-September around 30-40 thousand daily cases were being reported. Signs of a second wave were observed in early October followed by a gradual increase in the number of cases being reported daily. Since 05 November 2020, USA has recorded more than 1 lakh daily cases and this number is only increasing.  It is yet to be seen if this is the peak-phase for the second wave or if the cases continue to increase.
Increase in Case Positivity despite an increase in the number of tests
The number of daily cases is not the only measure for understanding the spread of COVID-19 infection and the intensity of the 2 wave.  The Case Positivity Rate (CPR) is a parameter which offers further insights about the spread of COVID-19.  It refers to the number of COVID-19 positive cases out of the tests that are conducted. A higher positivity rate generally indicates a higher prevalence of the infection.
The testing data for Spain and France during their peak phase of the first wave of COVID-19 infection is not available and hence limits the comparison between the two waves for these countries. However, what can be understood for both these countries is that the higher number of cases being reported in the second wave  also correlate with  higher CPR during this period.
In UK, Italy & Germany, there is a recent increase in the CPR which coincides with their second wave of COVID-19 though the current CPR is less than the CPR during the peak of the first wave.
The USA has a slightly different trajectory. As seen in the trends for number of new daily cases, USA took a longer time to reach its peak. The CPR during that peak period was less their initial CPR since a greater number of tests were being conducted. However, contrary to the trend in European countries which are also experiencing a second wave, the current CPR in USA is more than the one observed during its peak in terms of number of daily cases.
The case of Russia is similar to the Western European countries where in there is a recent spike in CPR but is still less than the CPR during the first peak. Overall, Russia has a lesser CPR compared to the other countries being discussed in this story, with the CPR ranging between 4%-5%.
This could be due to the fact that the first wave peaks of the European countries were during the initial phases of COVID-19 pandemic where the number of tests conducted was lower.
Over the last many months, the number of daily tests has increased significantly across countries. The CPR has increased with the increase in the testing numbers strengthening the claim about higher prevalence of COVID-19 in the 2 wave. The infection seems to be more widespread now compared to the first wave. Spain & Germany do not release data on the number of tests on a daily basis. However, the updates provided during various intervals indicate an increase in the number of tests and a corresponding increase in CPR.
Among the countries being discussed in the story, there is a decrease in the number of daily tests conducted in the France. During this period, there is also a decrease in the CPR of France.
The testing strategies could vary, with few countries conducting more tests and few others resorting to have a more targeted approach for the tests. Nevertheless, the common trend is that that there is an increase in the number of daily tests when compared to the first wave for all these respective countries.
CPR & Number of cases alone do not reflect the severity
While an increase in the number of cases along with an increasing CPR points to a widespread prevalence of COVID-19, they do not convey the complete picture especially with respect to severity. Fatality rate provides is a better indicator of the severity. One of the important aspects observed during the first wave of COVID-19 infections, especially in the Western European countries like Italy & Spain was the higher Fatality rates.
We would discuss about the same in the second part of this story. Furthermore, we would also look at the trend of COVID-19 infection spread in India and how it is different from the trend in these countries. Through this, we would also discuss the possibility of a second wave in India and its potential spread.
Featured Image: COVID-19 Case Positivity Rate

created: November 26, 2020


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Excise Duty on Petrol & Diesel rescue to Union Tax revenues in 2020-21
Sai Krishna Muthyanolla
June 11, 2021
Lower tax revenues from both direct & indirect taxes were anticipated in 2020-21 because of the pandemic’s impact on the economy. As expected, the revenues from almost all types of taxes reduced in 2020-21 compared to 2019-20 if provisional figures for 2020-21 are to be believed. However, the Gross Tax Revenue of the Union Government for 2020-21 is slightly higher than that of 2019-20 mainly on account of the 63% increase in the ‘Excise Duty’ collections.
In the latest Union Budget for 2021-22, the Revised Estimate (RE) of Net Tax Revenue for 2020-21 was pegged at Rs.13.44 lakh crores. This is 18% less than the Budget estimate (BE) of Rs. 16.35 lakh crores, made during the presentation of the 2020-21 budget. This 18% reduction in the RE is not unique to 2020-21. Even for the previous year 2019-20, the RE was 9% less than the BE.
The higher difference in the RE and BE for 2020-21 is a reflection of the state of the economy impacted by the COVID-19 pandemic. Lower Tax revenues impact government spending and it is all the more problematic since the government has to spend more on welfare & stimulus measures to cushion the impact of the pandemic. The second wave of COVID-19 infection during the initial months of 2021-22 is more widespread and impacted the entire country. Many states have imposed lockdown measures to contain the spread. The impact of these measures on the economy in general and tax collection, in particular, will only be known in the coming months.
The actual revenue & expenditure figures for 2020-21 will only be known much later, during the presentation of the budget for 2022-23. However, provisional figures of revenue & expenditure for 2020-21 are available on the website of ‘Controller General of Accounts (CGA)’ in the Ministry of Finance. Using these provisional numbers, we analyse revenue numbers for 2020-21 and also the trend in tax revenue over the last few years to understand the impact of COVID-19, in this story.
Growth Rate of ‘Gross Tax Revenue’ declined since 2017-18
As per the information available on the CGA website, the ‘Gross Tax Revenue (GTR)’ for the year 2020-21 is Rs. 20.24 lakh crores. These figures are provisional and might change slightly as the figures are reconciled over the next few months. This is only a slight increase over the Rs. 20.1 lakh crores of GTR for 2019-20.
While the slight increase in 2020-21 GTR compared to 2019-20 might sound positive, it has to be noted that the RE for GTR was severely curtailed compared to the BE. While lower than expected GTR was anticipated for 2020-21 due to the pandemic, the growth rate in GTR was declining even in the earlier years.  In 2019-20, there was a negative growth rate of -3.38% in the GTR, meaning the GTR for 2019-20 was lower than that of 2018-19. This negative growth rate in 2019-20 can be seen as a continuation of the declining trend in the growth rate observed since 2017-18.
Overall, though the less than expected GTR for 2020-21 can be attributed to the pandemic, the decreasing trend was visible even before the pandemic struck.
Tax Revenues picked up in the latter half of 2020-21
As already highlighted earlier, despite 2020-21 being a pandemic year, the GTR was on par and slightly more than the 2019-20 figures. However, this is on the back of negative growth in 2019-20 which means that the GTR for 2020-21 is lower than that of 2018-19.
The month-wise figures of GTR for 2020-21 indicate that the impact of the pandemic is evident but was more prominent or limited to the first six months of 2020-21. The month-on-month comparison with 2019-20 indicates that the greatest fall in GTR was in April 2020 compared to April 2019. GTR in April 2020 was only Rs. 67.5 thousand crores compared to Rs. 1.21 lakh crores in April 2019. The lower month-on-month figures for GTR in 2020-21 continue till September 2020 i.e., the first half of 2020-21 with the exception of August 2020 which witnessed a minor increase in GTR compared to August 2019.
Starting October 2020, there has been a significant increase in the GTR and month-on-month figures for 2020-21 were significantly higher than in 2019-20. The greatest increase was recorded in December 2020, when the GTR of the Union Government was Rs.1.03 lakh crores more than the GTR in December 2019. The recovery during the latter half of 2020-21 covered up the losses during the first half to an extent. However, we will be able to ascertain the actual quantum of recovery only when the final figures for March 2021 are available.
However, the increase in tax revenue in 2020-21 compared to 2019-20 was not uniform across tax groups.
Significant fall in the Direct Tax revenue in 2020-21, mainly on account of lower Corporate Tax revenue
Among the various Taxes & Duties levied by the Centre, Corporate Tax and Income Tax are considered to be Direct taxes, as they are levied directly on the income of the company/individual. Direct Taxes also include Wealth Tax which was abolished in 2015. Hence, ‘Direct Taxes’ currently imply only Corporate Tax and Income Tax.
The ‘Net Direct Tax’ collection for 2020-21, is estimated at Rs. 9.26 lakh crores. This is more than 10% lower than the 2019-20 figure of Rs. 10.37 lakh crores. This is a continuation of a declining trend that began in 2019-20 when the ‘Net Direct Tax revenue’ was lower than 2018-19.
This decline is primarily because of the fall in ‘Corporate Tax’ revenues in 2020-21. This is in continuation of the declining trend that also began in 2019-20. The ‘Corporate Tax’ revenue fell from Rs. 6.64 lakh crores in 2018-19 to Rs. 4.57 lakh crores in 2020-21 (provisional figures). While the pandemic has impacted the collections, the declining trend began much before the pandemic.
The Monthly Corporate tax revenue figures indicate that, with the exception of December 2020, the revenue was lower across all the months in 2020-21, compared to the same months in 2019-20.
On the other hand, even the ‘Net Income Tax’ revenue decreased in 2020-21, though not at the same rate as ‘Corporate Tax’. The provisional figures for 2020-21 peg the ‘Net Income Tax’ revenues at Rs. 4.69 lakh crores, down from Rs. 4.8 lakh crores for 2019-20. This is the first time in many years that the ‘Income Tax’ revenues have decreased. The monthly trends indicate that during the first four months of the financial year, the month-on-month ‘Income Tax Revenue’ was lower for 2020-21 compared to the same month in 2019-20. However, since August 2020, the monthly Income Tax revenue is higher than the same month in 2019-20.
Revenue through Union Excise Duties increased by 63% in 2020-21
While there has been a fall in the ‘Direct Tax revenue’ for 2020-21, the Indirect Tax Revenue has increased. The major components of the Indirect Taxes include – GST (CGST, IGST, Compensation Cess), Custom Duties, Union Excise Duties. Prior to the introduction of GST, Service Tax used to be one of the major components of the Centre’s Indirect Tax revenue.
The overall revenue from these major Indirect Tax sources for 2020-21 is Rs. 10.77 lakh crores. This is an increase over previous years revenue of Rs. 9.57 lakh crores. While there is an increase in the overall Indirect Tax revenue, there are variations in the trends for various taxes.
Goods & Services Tax (GST):
Customs & Excise Duties:
While the GST revenues fell during 2020-21, there is an increase in the net revenues through Custom Duties & Union Excise duties.
A month-month comparison shows that since June’2020, the revenue through ‘Excise duties’ was higher every month, compared to the same month in 2019-20. The provisional figure for March’2021 has the greatest difference.
Shortfall in Direct Tax revenues & GST compensated through increased excise duties on Petroleum products.
It is evident from the available data that there is a fall in the tax revenues from major sources of the Union government in 2020-21. This includes direct taxes of Income Tax & Corporate tax along with the indirect tax of GST. The BE for ‘Corporation Tax’ in 2020-21 was Rs. 6.81 lakh crores and for Income Tax was Rs. 6.38 lakh crores. However, the actual collection from these taxes is much lower. In fact, the RE for both direct tax sources was almost 30% lower compared to the BE for 2020-21. The same can be said about GST.
Meanwhile, the budget estimate for Union Excise Duties was Rs. 2.67 lakh crores. However, the actual collection during 2020-21 is much higher. This is also reflected in the Revised estimates for excise duties. The Union government is trying to compensate for the loss in Tax revenue from Direct Taxes & GST, through the increase in the Excise duties.
As per the information available on the website of Petroleum Planning & Analysis Cell (PPAC), the contribution of excise duties on petroleum products to the Central Exchequer, during the first 9 months of 2020-21 was Rs. 2.36 lakh crores. This is already more than the Rs. 2.23 lakh crores collected in 2019-20 through excise duty on petroleum products. The actual contribution of excise duty on petroleum products could be much higher in 2020-21.
The data clearly indicates that the excise duty on petroleum products could be contributing around 15% to the GTR of the Union Government. If one includes the other forms of revenue through petroleum products like cesses, customs duty, corporate taxes, etc. the contribution could be even higher.
Excise Duty on Petrol & Diesel increased significantly in May 2020
The Central Government increased the excise duty on Petrol & Diesel by Rs. 10 and Rs. 13 respectively in May 2020 through changes to various duties & cesses. This increase is clearly reflected in the excise duty collection figures starting June 2020.
In earlier stories on Factly, we have highlighted how there has been a decrease in the consumption of Petroleum products during 2020-21, with the situation improving only in the latter part of the year. Despite the reduced consumption, the excise duty revenues increased significantly starting June 2020, mainly on account of the increased duty on petrol & diesel.


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Data: Export of Essential Commodities from India down 27% in 2020-21
Sai Krishna Muthyanolla
March 15, 2021
The Essential Commodities act lists seven broad categories of items as essential commodities. Data shared by the government indicates that the value of exports of these commodities from India has increased continuously between 2015-16 & 2018-19. However, there has been a decline since then. The value of exports in the first ten months of 2020-21 is 27% less than the exports during the same period in 2019-20.
The Essential Commodities Act, 1955 was enacted for controlling the production, supply, and distribution of, and trade and commerce of certain commodities which are considered basic needs for survival and pricing of which can have a major impact on the general public. The law currently being administered by the Department of Consumer Affairs prohibits hoarding and black marketing of essential commodities. In case the Central Government is of the opinion that the price of a certain commodity (inflation) is increasing due to short supply, it has the power to direct the state governments to fix the stock-holding limit of the commodity for a fixed period. Section 3 of the Act states that ‘if the Central Government is of opinion that it is necessary or expedient so to do for maintaining or increasing supplies of any essential commodity or for securing their equitable distribution and availability at fair prices, it may, by order, provide for regulating or prohibiting the production, supply and distribution thereof and trade and commerce therein.’
Seven commodities listed as Essential Commodities in the act
The Act defines an essential commodity as that which is specified in the Schedule. The commodities specified in the Schedule are drugs (medicines used for diagnosis, treatment, mitigation, or prevention of any disease or disorder in human beings or animals, as defined under Drugs and Cosmetics Act, 1940), fertilizers, foodstuffs such as potato, onions, cereals, edible oilseeds and oils, hank yarn made wholly from cotton, petroleum and petroleum products, raw jute, jute textiles, and seeds of food-crops and seeds of fruits and vegetables. Face masks and sanitizers were included in the list of essential commodities in the wake of the COVID-19 outbreak, to enhance their production, avoid over-pricing, and make them more accessible. It was later removed from the list once the purpose was served.
India exports 18 items which fall under the ‘essential commodities’ list
India has been a major exporter of petroleum products, drug formulations, jewellery, and diamonds. Besides these, India also exports agricultural products. The USA, UAE, and China are the top importers of such Indian products. Commodities classified as ‘essential’ in India and are exported are jute and jute products, fruits and vegetables, cereals, pulses, food grains, petroleum, and cotton yarns. Altogether, 18 products under ‘essential commodities’ are exported by India.
COVID-19 & other factors resulted in reduction of these exports
Multiple factors, both global and domestic, influence the export of essential commodities. Some of these are demand and supply in domestic and international markets, currency fluctuations, policy interventions, weather conditions, and international prices. In 2020, the COVID-19 pandemic induced trade restrictions in movement and lockdown have disrupted the exports of essential commodities also.
As per the data shared by the government in the Lok Sabha, the value of exports of essential commodities has grown continuously from 2015-16 until 2018-19. The exports were worth the US $45.7 Billion in 2015-16, which crossed $54 Billion in 2017-18, and was the highest in 2018-19 with exports worth $64.4 Billion. However, the value of exports dropped to $56.3 Billion in 2019-20, on account of multiple factors.
COVID-19 began taking a starting in the last quarter of 2019-20. As cases increased rapidly, many countries started imposing strict lockdowns. Global supply chains were disrupted due to the restrictions on international transport. By April 2020, (beginning of 2020-21), over 100 countries had introduced major or partial lockdown. A WTO note of April 2020 notes that 80 countries had introduced export prohibitions or restrictions as a result of the COVID-19 pandemic. All these factors meant that the downward trend in exports observed in 2019-20 continued and worsened in 2020-21.
In 2020-21, data is available for the ten months from April 2020 to January 2021. As per data shared in the Lok Sabha, the value of exports of these essential commodities was only $34.8 Billion. Compared to the same period in 2019-20, the value of exports is down almost 27%. If the trend continues, the overall fall could be in excess of 30% by the end of 2020-21. It doesn’t look likely that the exports will reach the 2018-19 levels even in the next 12 to 18 months.
Petroleum products constitute 2/3rd of the value of essential commodities exports
Petroleum products constituted more than two-thirds of the essential commodities exports between 2015-16 & 2020-21 by value. Export of petroleum products had increased from US$ 30.6 Billion in 2015-16 to US$ 46.6 Billion in 2018-19, an increase of over 52%. It dropped to US$ 41.3 Billion in 2019-20, though it constituted 74% of the value of all essential commodities exported that year. In 2020-21, from April 2020 to January 2021, petroleum products worth only US$ 19.8 Billion had been exported, accounting for only 57% of the net value of essential commodities exported. In 2019-20, the same ten months accounted for 86% of petroleum products exported that year. Going by the current trend, the total value of exports of petroleum products by the end of 2020-21 might be 40% less than the 2019-20 numbers.
Rice, Basmati, Drugs, and Cotton Yarns account for nearly 1/5th of the essential goods exports
Among the other commodities, basmati rice, other rice varieties, bulk drugs, and drug intermediates, and cotton yarns exports were worth more than USD 12 billion every year from 2015-16 to 2020-21. Together, these four products alone constitute more than 23% of the exports in 2018-19, and more than 36% in 2020-21, till January 2021.
The trend in the case of a majority of the commodities including Rice (Basmati & other varieties), Pulses, Fruits/Vegetable seeds, Jute products, and Fertilizers is similar. There has been a continuous increase in their export value between 2015-16 and 2018-19. However, the export value in 2019-20 reduced compared to 2018-19. However, in just the first ten months of 2020-21, the exports of rice, wheat, other cereals, raw jute, and jute floor coverings have already surpassed the 2019-20 levels, contrary to the overall decreasing trend of exports in 2020-21. Rice exports (of other than Basmati) in the first ten months of 2020-21 has increased by 73% compared to 2019-20. The value of wheat exports has increased by nearly 5.5 times during the same period.
Government amended the Essential Commodities Act recently
In September 2020, the parliament passed the three agriculture-related laws which have received mixed responses. One of these is the amendment to the Essential Commodities Act which has provisions for relaxation of the stringent stocking & other norms for foodstuff such as cereals, pulses, oilseeds, edible oils, onion, and potatoes.
As per the amendment, the supply of these food grains may be regulated only under extraordinary circumstances which may include war, famine, extraordinary price rise, and natural calamity of grave nature. The imposition of stock limit norms for these items can only be done in certain cases.
The government’s reasoning behind the amendment is that farmers are unable to realize better prices due to a lack of investment in cold storage, warehouses, processing. The lack of investment is linked to the restrictions imposed by the Essential Commodities Act even though India has become surplus in most of these Agri-commodities. As noted earlier, the amendment relaxed the norms of many food items in an effort to encourage investment & participation from private players in this sector. Furthermore, the amendment states that control orders related to the supply of certain foodstuffs may be issued only under extraordinary circumstances that may include war, famine, extraordinary price rise, and natural calamity of grave nature.
The amendment also exempts a processor or value chain participant of any agricultural produce from any stock limit regulations if the stock held by such person does not exceed the overall ceiling of installed capacity of processing or demand for export in case of an exporter. That is, the installed capacity of a value chain participant and the export demand of an exporter will remain exempted from such stock limit imposition.
However, there have been widespread protests opposing the new farm laws including the amendment to the essential commodities act. The Supreme Court has since stayed the implementation of these three laws until further notice.
Featured Image: Export of Essential Commodities


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Data: FASTag Collections Cross Rs. 50,000 crores in 2022-23 and even in 2023-24
Sai Krishna Muthyanolla
February 26, 2024
Since the introduction of NETC, the adoption of NETC has been moderate till 2018-19. However, in 2019-20, the collections almost doubled to Rs. 11,295 Crore, from Rs. 5,760 Crore in 2018-19. The amount of toll collection in 2022-23 stood at Rs. 54,144 Crore, and for 2023-24, the collection stood at Rs. 53,289 Crore till January 2024.
The Indian Highways Management Company, responsible for road toll management, had advised highway users to obtain FASTags from a revised list of authorized banks, omitting Paytm Payments Bank. This comes after IHMCL previously barred Paytm Payments Bank from issuing new FASTags, indicating the controversies surrounding KYC verification and a report from the Reserve Bank of India (RBI). The recent suspension of Paytm Payments Bank’s banking operations by the RBI, initially set until 29 February 2024 and now extended to 15 March 2024, further contributes to the evolving situation.
With Paytm being among the prominent players in FASTag payments, in both the issuer and acquirer categories, this move could impact a significant segment of the population. In today’s story, we look at some of the highlights of the FASTag transactions.
About NETC
The National Electronic Toll Collection (NETC) program, popularly known as ‘FASTag’, stands as a flagship initiative of the Ministry of Road Transport and Highways (MoRTH) and the National Highway Authority of India (NHAI). Its nationwide implementation facilitates direct toll payments from customers, revolutionizing the toll collection process.
In 2016, the adoption of a “multi-issuer multi-acquirer” model was aimed at enhancing interoperability and expanding FASTag’s usage as a digital toll payment method. Subsequently, in 2017, dedicated FASTag lanes were introduced at National Highway (NH) fee plazas to facilitate seamless movement for vehicles fitted with FASTags. This convenience was further augmented in mid-February 2021, when all lanes at NH fee plazas were designated as FASTag lanes, ensuring enhanced convenience for commuters.
NETC Collections see consistent rise, 2022-23 records highest collections.
Since the introduction of NETC, the adoption of NETC has been moderate till 2018-19. However, in 2019-20, the collections almost doubled to Rs. 11,295 Crore, from Rs. 5,760 Crore in 2018-19. This might be partially due to the introduction of guidelines for the inclusion of state toll plazas under the ambit of the FASTag programme. In the next year, the growth was almost 107%, rising to Rs. 22,762 Crore, followed by a fall in the growth rates. The amount of toll collection in 2022-23 stood at Rs. 54,144 Crore, and for 2023-24, the collection stood at Rs. 53,289 Crore till January 2024.
In terms of the volume of transactions, the number of transactions stood at 3.4 billion in 2022-23, up from 0.582 billion in 2019-20. For 2023-24, the volume of transactions was at 3.1 billion till January 2024.
December 2023 saw approximately five thousand crore user fees collection.
The data on the monthly collection of tolls during the period 2023-24, starting April to January, indicates that December month recorded the highest toll collections of Rs. 4,876 Crore, followed by October month at Rs. 4,620 Crore and January at Rs. 4,617 Crore. This is a multi-fold increase from approximately Rs. 534 Crore in December 2018 and Rs. 1,257 Crore in December 2019. At a broader level, December month collections stood at a slightly higher level compared to the rest of the months, most probably because of the holiday season and travel plans.
Average daily ETC collections slightly higher during the first three months of year.
India witnessed a remarkable 42% surge in electronic toll collection through FASTags on highways, totaling over Rs. 54,000 Crore in 2022-23 as per National Payments Corporation of India (NPCI). The average daily toll collection rose from Rs. 40 Crore in December 2019-20 to Rs. 119 Crore in 2021-22 and further grew to Rs. 159 Crore in 2022-23. Furthermore, a historic milestone was achieved on 29 April 2023, as the daily toll collection through the FASTag system reached an all-time high of Rs. 193.15 crore, accompanied by a record 1.16 crore transactions in a single day.
As per the information submitted to the Standing Committee, the average daily collection through FASTag at the National Highway fee plaza has exceeded Rs. 163.09 crore in the fiscal year 2023-24, up to September 2023. The count of Electronic Toll Collection (ETC) transactions and the average daily ETC transactions at the National Highway fee plaza has surpassed 94.67 lakhs in the fiscal year 2023-24, as of September 2023.
Gujarat, Haryana, and Uttar Pradesh stand out in top-10 user fee toll plazas.
Toll collections depend on a variety of factors- location, type and movement of vehicles, toll charges, provisions of the concessionaire agreement, presence of structures such as bridges, tunnels, etc., and so on. As a result, some toll plazas see greater collections than the rest. The data on the collections in toll plazas show that Gujarat, Haryana, and Uttar Pradesh have two toll plazas in the list of highest collections.
The top-10 toll plazas almost collected over Rs. 250 Crore each in 2022-23, and the same can be seen for the period April 2023- January 2024. During the fiscal year 2023-24 (till January 2024), the average toll collections stood at Rs. 48 Crore, while the collections in these toll plazas are multi-fold of the average.
Decent penetration of FASTag, but some issues persist.
The recent budget session saw the presentation of the report of the Standing Committee on Transport, Tourism and Culture, titled ‘Operation and Maintenance of National Highways and Management of Toll Plazas’. During the consultations, the Ministry informed the committee that the implementation of FASTag resulted in benefits such as.
However, the committee also noted some issues that are still persistent in the FASTag ecosystem, such as:
The committee recommended regular audits and inspections of toll plazas, measures to minimize the existing congestion, and suggested the authority implement an oversight mechanism that reviews toll collection records and financial transactions to identify any discrepancies.

created: February 26, 2024


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Data: FCI’s Central Pool Stocks of Rice & Wheat Though Above The Minimum Levels Are Lower Than Previous Years - FACTLY
Sai Krishna Muthyanolla
August 25, 2023
The Food Corporation of India (FCI) is mandated to hold certain volume of procured food grains as buffer stock for a sustained period. This stock is maintained to ensure food security, stabilize prices, and meet any unforeseen emergencies. Data indicates that the Central Pool stocks of Rice & Wheat are the lowest in the last few years though they are more than the minimum levels.
On 09 August 2023, Government of India announced that the Food Corporation of India (FCI) would be offloading 50 LMT of wheat and 25 LMT of rice in the open market in a phased manner under the Open Market Sale Scheme (Domestic) for sale through an E-auction. This would be as per the reserve prices fixed by the government. It also added that the reserve price for rice would be brought down by Rs. 200/Qtl, making the effective price Rs. 2900/Qtl. The objective behind offloading is to moderate the prices of these food grains which have continued to be high despite various measures taken by the government as well as to tame inflation.
Earlier, the government announced a ban on non-basmati white rice to lower the price as well as ensure availability in the domestic market. This led to fear worldwide that the move would further elevate the already-high price of rice in the international market as the ban would tighten the global rice availability. India is the world’s leading rice exporter, accounting for more than 40% of the global rice trade followed by China.
The Food Corporation of India (FCI) is mandated to hold a certain volume of procured food grains as buffer stock for a sustained period. This stock is maintained to ensure food security, stabilize prices, and meet any unforeseen emergencies like droughts, natural disasters, or supply disruptions. (To know more about FCI and its role in procurement and storage, read Factly’s story) But what is the available level of food grain stocks in India? How much should the government maintain? We discuss these questions in this story.
FCI maintains monthly data on food grain stocks available in the central pool
The FCI maintains data on the available food grain stocks in the Central Pool at the beginning of every month. The information includes the stocks for Rice, Wheat, Un-milled Paddy, and Coarse grains. The stocks with FCI include Operational Stocks (to meet monthly demand under Public Distribution) and buffer stocks (maintained to meet any exigencies or to cover any shortfall in procurement). For this story, we have taken data from Dataful and the data is as of 01 August 2023.
The following graph shows the monthly buffer stock positions of rice and wheat as of 01 of every month since January 2014. The stock position is dependent on various factors such as the volume of procurement and the distribution of stocks.
Rice stock is the lowest in 2023 as compared to the last five years
Rice: In the first half of every year, the stock of rice gradually rises as most of the procurement happens in this period. However, in the second half, the stock declines as rice is a Kharif crop which is usually sown in June – July in most parts of the country. However, month-on-month comparison shows that until 2020, there was an overall increase in the stock maintained in each month. In 2020, the government started distributing more food grains to the public as a measure to deal with the pandemic-induced lockdown. Production was also hit in this period. Since 2020, the year 2023 has recorded the lowest stock. In January 2023, the stock was 123.35 MLT, much lower than that in 2022 when it was 221.54 LMT. This is the lowest stock recorded in the month of January since 2015. In most of the other months for which data is available as of 2023, the stock was close to the 2016-2017 levels, much lower than that in 2022.
Stock of wheat in March and April 2023 was about half of that in 2022
Wheat: Like in the case of rice, a cycle in stock is also witnessed in the case of wheat. Wheat, being a Rabi crop, is usually sown in the winter season (towards the end of the year) and harvested in March–May. This is the period when the stock with FCI is the highest before falling in the following months. While there was not much of a difference in the stock between 2014 and 2017, there was a gradual increase in the stock of wheat from 2018 to 2021 before witnessing a drop in 2022. In fact, the stock had dropped to less than 50% of the stock during the same time in 2021 in few of the months. The government had also imposed a ban on wheat exports then. This year, it was half of that recorded in 2022 in the months of March and April. In May 2023, the stock improved to 290 LMT. Nonetheless, it is still lower than that in May 2022 and May 2021, when the stock was 303.46 LMT and 525.65 LMT, respectively.
The minimum stocks of rice and wheat that need to be maintained in the Central Pool at the beginning of each quarter is notified by the Central Government.  The strategic reserve of rice and wheat to be maintained is 20 LMT and 30 LMT respectively throughout the year while the operational stock varies as per the season.
Rice stocks is better positioned than wheat stocks compared to the minimum requirement
Compared to the stocking norms, the stock of rice in the first quarter of 2023 (as of January 2023) was 123.35 LMT. Though this is low compared to the same time in the previous years, it is still higher than the minimum stock level of 76.1 LMT including both operational stock and strategic reserve. The minimum stock in the chart includes the total reserve including both types of stock to be maintained as per the norms. Likewise, in April 2023, the stock of rice was 248.6 LMT and in July 2023, the stock of rice was 253.49 LMT as against the minimum requirement of 117.8 LMT and 117.4 LMT, respectively. That is, the stock continues to be well above the minimum requirement set. It should be noted that the current food grain stocking norms are in effect since more than 6 years, from 01 July 2017.
In the case of wheat, as of 01 January, in 2023, the stock available was 171.7 LMT as against the norm of 138 LMT. In April, as per the norm, the minimum stock is to be 74.6 LMT and the wheat availability as of 01 April 2023 was 83.45 LMT, marginally more than the minimum stock. In the third quarter, as of July 2023, India had 301.45 LMT, slightly more than the minimum requirement of 275.8 LMT.
Data indicates that there has been an overall reduction in the stocks available with the FCI with respect to both the staple food grains of India- rice and wheat. In the last two years, the buffer stocks available are closer to the minimum stocks required to be maintained as per the buffer stocking norms. Such a decline is being witnessed at a time when the procurement has improved. The procurement of rice was more than 570 LMT in the last 3 years as compared to about 300 to 400 LMT between 2012-13 and 2017-18. However, in the case of wheat, the procurement has also been low in the last two years which should have impacted the wheat stocks.


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FDI flows to ICT Projects increase in 2020 despite overall global slowdown
Sai Krishna Muthyanolla
July 2, 2021
As noted in our previous story, global FDI inflows reduced by 35% in 2020 reaching a record low. However, there were differences in the trends by sector & economy type. Contrary to the trend in most other sectors, FDI inflows to ICT Green-Field projects increased by 22% in 2020 due to the rise in global demand for digital infrastructure & services.
In the previous story, we had observed that as per UNCTAD’s World Investment Report -2021 (WIR), the Global Foreign Direct Investment (FDI) inflows in 2020 were the least since 2005. With the exception of a few countries, the decline in FDI flows was observed across the countries. The Developed economies were the most impacted both in terms of FDI inflows as well as outflows. In this story, we explore the trends in FDI in terms of the different projects and the various sectors receiving FDI.
Impact of the Pandemic visible across all project types
The impact of the COVID-19 pandemic on FDI inflows was evident across most of the countries irrespective of the type of economy i.e., Developed, Developing & Transitional economies. This global impact is the result of considerable impact on every type of FDI, which has further resulted in an impact across various sectors.
As per the World Investment Report-2020, all the three types of FDI i.e., Greenfield Projects, Cross border Mergers & Acquisitions (M&As) and International Project Finance have all seen a sharper decline.
In a Green-field FDI project investment, the parent company creates a subsidiary in a different country and establishes the operations from the ground up. These FDI inflows are also referred to as direct investments and the investing company retains a higher degree of control. These investments entail a higher degree of risk, as the volume of investment is higher, and the returns are expected only in the longer run.
Hence, the uncertainty caused by the pandemic had a considerable impact on Green-field investments, where-in the value of Green-field projects fell by 33% in 2020 compared to 2019 and the number of such investments announced fell by around 29%.
In terms of International Project Finance, the number of deals announced fell only by 5%, but the overall volume had a major decline of 40%. This type of FDI is used for investments in long-term infrastructure or industrial projects.
FDIs through Merger & Acquisitions reduced 6% by value while the number of deals saw a decline by 13%. The WIR observes that there is a sharp decline during the first half of the year, which was offset by the surge seen during the last quarter of 2020.
Green-field FDI during 2020 is the least in history
The total value of the Green Field investment projects announced in 2020 was $ 564 billion, compared to the $846 billion reported in 2019. The WIR-2021 observes that this is the least Greenfield Investment in a year in history.
This fall is visible across all types of economies.
WIR-2021 states that the focus of the foreign investors for Green-field projects shifted from developing economies to the developed economies. A more stable environment could be one of the factors.
Meanwhile, FDI in Green-field projects in Transition economies also fell by 58% in terms of volume. The number of announced FDI projects in these countries fell from 697 to 371. Most of these countries are those transitioning from controlled economies to free-market economies. Hence, they mostly include Eastern-European countries & former-Soviet republics.
41% fall in the value of FDI in Green-field projects of Manufacturing Sector
The fall in FDI if Green-field projects are visible across all the three sectors. Primary Sector, which already has lower FDI inflows compared to Manufacturing & Services sectors further fell in 2020. The total volume of investment in 2020 was $ 11 billion, nearly half of $ 21 billion in 2019. The number of Green-field projects announced in 2020 was 100, compared to 151 announced in 2019.
A major portion of the investment in this sector is due to the $6.4 billion project announced by Royal-Dutch Shell, a Netherlands-UK company investing in Australia.
Among the various industries, the ‘Coke & refined petroleum’ sector saw a major decline, wherein the value of investments fell from $ 94 billion in 2019 to $ 30 billion in 2020. The preference of the investors in the energy sector has shifted to Renewable sources of energy. However, even this sector was impacted by the pandemic with a 5% decline in investment during 2020. Still, investments in renewable energy sectors were better off compared to most other sectors
‘Construction and Automotive Industry’ also saw a major decline in investments during 2020. In both these industries, the value of FDI fell by 47%. The investments in Transportation & Storage industry fell by around 39%.
The pandemic had a positive impact on the ‘Information & Communication Technology’ (ICT) sector. The rise in global demand for digital infrastructure & services led to an increased preference for FDI projects in the ICT industry. The value of the projects in the ICT industry increased by 22% to $ 81 billion during 2020 compared to $ 66 billion in 2019. US-based Amazon’s announcement of investing $2.8 billion in India is one of the major Green-field projects announced in the ICT industry.
FDI in International Project Finance, Global M&A saw a lower decline during 2020
International Project Finance
Compared to Green-field projects, the FDI as ‘International Project Finance’ witnessed a lower impact during the pandemic year. However, the total project value fell by around 42% to only $ 367 billion in 2020. This is the least in a year since 2003.
It must be noted that while there has been a drastic fall in the value of the projects announced, the decline in the number of projects is only nominal, a reduction of 5%. This could point to hesitancy among the investors to commit high-value investments in 2020.
Cross-Border M&As
Global Merger & Acquisitions among the Multi-national entities are also one of the major sources of FDI flows between the countries. Cross-Border M&A had the least impact in terms of volume during 2020, with a fall of only 6%. However, there are major variations within the sectors.
FDI investments on Sustainable recovery
As per the predictions provided in WIR-2021, Global FDI is expected to increase by around 10-15% in 2021. While the recovery would still be lower than the decline experienced in 2020, it would at least signal a change in the right direction. As per the projections, the recovery could continue further in 2022 and reach the levels of 2019 with total FDI touching $ 1.5 trillion.
The uncertainty around the pandemic which continues even in 2021 is cited as the main reason for a moderate projection in 2021. The emergence of a second wave in most of the countries after the opening up of the economy and the prospect of further waves of COVID-19 infection creates further challenges in encouraging investments.
The recovery across the countries is expected to be un-even. Developed countries with their inherent stability and resources are expected to be leading the recovery in FDI. The report states that Asia’s resilience in attracting FDI during 2020 would continue and it would be an attractive destination for FDI even in 2021. The focus for future FDI flows would be in sustainable projects including infrastructure, green economy & digital economy sectors.
Featured Image: Global  FDI flows


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FDI into India increases by 25% in 2020-21, led largely by the more than 3-fold increase in Computer Hardware & Software
Sai Krishna Muthyanolla
September 14, 2021
Despite the disruption caused by COVID-19, FDI into India increased by 25% in 2020-21. This increase was largely due to the more than 3-fold increase in FDI in the Computer Hardware & Software sector. FDI from USA also increased substantially. Here are the numbers in detail.
As per the World Investment Report -2021 (WIR) released by UNCTAD (United Nations Conference on Trade and Development), India was the ranked 5 largest recipient of Foreign Direct Investment (FDI) in 2020. The data from the report indicates that there is an increase in India’s FDI inflow by 27% compared to 2019. These numbers show that India continues to be a preferred destination for FDI, despite the disruption caused by the COVID-19 pandemic.
The information in WIR-2021 is further corroborated by the ‘Quarterly Fact Sheet on FDI’ published by the Department for Promotion of Industry & Internal Trade (DPIIT) of the Government of India. The provisional value of total FDI received in 2020-21 is around 25% more than the amount received in 2019-20. Recently, DPIIT released the fact sheet for the first quarter of 2021-22, which also indicates a higher FDI inflow compared to the first quarter of 2020-21.
Earlier, we had analysed the FDI trends in India over a ten-year period up to 2019. In view of the COVID-19 pandemic, we look at trends in FDI for the last two years and analyse if there is any impact of the pandemic.
Higher FDI inflows during 2nd & 3rd Quarter contribute towards the overall increase in 2020-21
As indicated, the FDI inflow into India during 2020-21 increased by around 25% compared to 2019-20.  In 2020-21, the total value of FDI received was Rs. 4.42 lakh crores while in 2019-20 it was Rs. 3.53 lakh crores. The growth rate recorded in 2020-21 is higher than that of 2019-20 which was 14%. However, the increase in FDI during 2020-21 compared to 2019-20 was not uniform across the year.
The FDI received during the first quarter of 2020-21 was Rs. 49.81 thousand crores, compared to Rs. 113.47 thousand crores during the first quarter of 2019-20.  The comparative lower monthly FDI continued in July 2020 as well. This period coincides with the early phase of the COVID-19 pandemic in India, and more specifically the nationwide lockdown. However, in August ’20, there was a huge spike in the FDI inflow with Rs. 1.31 lakh crores. This could be a result of the economy opening and the pending FDI flowing in. The higher month-on-month trend continued for the remainder of 2020. But during the last quarter of 2020-21, the FDI inflow slowed down and was lower than the FDI received during the last quarter of 2019-20.
The first quarter trends for 2021-22 indicate higher FDI inflow compared to even the first quarter of 2019-20.
FDI from the USA more than tripled in 2020-21 compared to 2019-20
The increase in FDI during 2020-21 can be largely attributed to the increase in FDI from the USA.
A review of the FDI in recent years shows an increasing trend in FDI investment from the USA. In 2019-20, the USA ranked fourth as the source country of FDI inflow into India with a volume of Rs. 29.85 thousand crores. This accounted for around 8.5% of the total FDI received by India in that year.
However, in 2020-21, there was an exponential increase in the FDI from the USA which reached Rs. 1.02 lakh crores, which is around 23% of the total FDI received in 2020-21. Further, the USA stands next only to Singapore in 2020-21 as the top source country for FDI inflow. The FDI inflow from Singapore which is the highest in recent years increased by 25% during 2020-21 compared to 2019-20.  The increase in FDI from the USA & Singapore compensated for the fall in FDI from other major FDI sources such as – Mauritius, Netherlands, Japan, Cayman Islands, etc. Meanwhile, there was also a significant increase in FDI from UAE, which increased from Rs. 2.3 thousand crores in 2019-20 to Rs. 31.2 thousand crores in 2020-21.
During the first Quarter of the current financial year i.e., 2021-22, Mauritius & Singapore are the source for the highest FDI, followed by the USA.
Computer (Hardware & Software) & Construction sectors are the key contributors to increased FDI in 2020-21
As is the case with the investing countries, the increase in FDI during 2020-21 was not uniform even in the case of the sectors that attracted investment. As per the information available with DPIIT, most of the sectors received lesser FDI in 2020-21 compared to 2019-20.
The Service Sector, which received the highest FDI until 2019-20, witnessed a fall in the investments in 2020-21. The FDI in the sector during 2020-21 was Rs. 37.54 thousand crores, compared to Rs. 55.42 thousand crores in 2019-20. The major fall in the investment was in the Telecommunication Sector where-in the FDI fell from Rs. 30.94 thousand crores in 2019-20 to only Rs. 2.88 thousand crores in 2020-21. The automobile industry also witnessed a fall in the FDI.
Understandably, the Tourism industry received a major hit during 2020-21. During 2019-20, the FDI in this sector was Rs. 21 thousand crores, which fell to Rs. 2.76 thousand crores in 2020-21. This is lower than the Rs. 7 thousand crores of FDI received in 2018-19. The fall in the FDI in these major sectors was offset by the increased FDI in other sectors.
Computer (Software & Hardware Sector) witnessed a nearly 3.5 times increase in the quantum of FDI in 2020-21 compared to 2019-20. During 2019-20, FDI in this sector was Rs. 54.2 thousand crores, which increased exponentially to Rs. 1.94 lakh crores in 2020-21.
Similarly, the FDI in Construction (Infrastructure) sector increased from Rs. 14.5 thousand crores in 2019-20 to Rs.58.2 thousand crores in 2020-21. Another sector that benefited from increased FDI during 2020-21 is Drugs & Pharma, where the FDI increased from Rs. 3.6 thousand crores in 2019-20 to Rs.11 thousand crores in 2020-21.
Early trends for the current financial year i.e., the first quarter of 2021-22, indicate that the Computer sector continues to receive higher FDI, with a recovery in Automobile Industry.
Gujarat, Maharashtra & Karnataka account for more than 75% of the total FDI
The destination of the FDI in India is concentrated among few states. For the year 2020-21, Gujarat received FDI worth Rs. 1.63 lakh crores, which accounts for around 37% of the total FDI received by India. Maharashtra accounted for nearly 27% of the total FDI in 2020-21. Together with Karnataka, these three-state accounts for more than 75% of the total FDI received by India in 2020-21. Delhi & Tamil Nadu are the other prominent states that received more than Rs. 15,000 crores each in 2020-21.
DPIIT has been reporting the FDI received by States since October’2019. Prior to that, the reporting was based on RBI Regional offices. For the 18 months that the information is made available (October’2019 – March’2021) state-wise, 83% of the total FDI went to the four states of – Gujarat, Maharashtra, Karnataka & Delhi.
A study report by RBI from 2011 indicates that the more industrialized & developed states are likely to receive a higher share of FDI, ignoring the other economically weak states. This is clearly reflected in the states receiving the highest FDI.
Albeit a lower value, Jharkhand which is considered to be among the economically poorer states has managed to attract about 3% of the total FDI received by India during these 18 months. This could be because of the presence of the mining industry.
While the regional differences in receiving the FDI can be attributed to the better investment opportunities and congenial investment climate in the states, the numbers do not reveal the total picture. As highlighted above, the data reported by DPIIT is based on the RBI regional offices (along with the State they are situated). Any FDI involves investment made by a foreign agency in the form of Capital/reinvestment into an entity in India. While the entity in India can expand its scope of business, the FDI is into the registered entity. Hence, the FDI inflow is recorded & attributed to the geographical location of the registered entity.
While states like Gujarat, Maharashtra, Karnataka, Tamil Nadu, Telangana, etc. might be among the states which attract more FDI, the numbers could be higher also because they are host states for some of the organizations with operations across the country.
Featured Image: FDI in India

created: September 14, 2021


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Data: Few States Account for Most of The Commodity Exports of India
Sai Krishna Muthyanolla
June 22, 2023
Data from the NIRYAT portal indicates that few states account for most of the commodity exports from India. Gujarat & Maharashtra with a large industrial base lead the commodity exports.
Exports are key to the economic growth of a country as they provide the necessary foreign currency reserves.  Since Independence, India’s balance of trade has largely been negative i.e., the value of imports exceeds the value of exports. crude oil, petroleum products, coal, electronic components, organic chemicals, etc are a few of the major imports of India. Various domestic industries and commercial establishments use these imported goods as inputs and raw materials. Hence, the reduction of imports could have an impact on economic activity in the country unless these are locally available. Therefore, increasing exports is important to reduce the deficit in the trade balance while parallelly working on building domestic industry to reduce imports.
Over the years and especially after the economic reforms in 1992, India has made efforts to increase the value as well as the portfolio of its exports.  Factly’s latest story on export trends in the country can be read here.
The diversity of economic activity and traditional industrial activity across the states in India means that the export profile of different states is different.  Understanding the export potential of each state and identifying the products that can be leveraged as exports can contribute to increasing India’s exports. So, which states in India have the greatest exports? What are the goods that these states export? Here is an analysis.
The State-wise export data is collated from the Government of India’s NIRYAT (National Import Export Record for Yearly Analysis of Trade) portal. Data for the three-year period 2020-21 to 2022-23 is analysed for this story. It must be noted that the data on the NIRYAT portal pertains only to merchandise (goods) and does not include services.
Gujarat, Maharashtra & Tamil Nadu are the highest merchandise exporting states in India
As per the data provided on the NIRYAT portal, Gujarat stands first in terms of merchandise export value. The total value of exports by Gujarat for the year 2022-23 was 146.49 billion USD. This is nearly 1/3rd of the total exports of India for the year. The value of Gujarat’s exports is also more than double of the second-highest exporting state i.e., Maharashtra.  The total value of exports of Maharashtra is 72.5 billion USD, followed by Tamil Nadu with 40.7 billion USD. These three states account for around 58% of the total merchandise exports of the country in 2022-23. Karnataka, Uttar Pradesh, Andhra Pradesh, and Haryana are other states which have higher value of merchandise exports.
Data indicates that the merchandise exports are concentrated in only a few states. These top-7 states account for more than 3/4 of the total merchandise exports of India for the year 2022-23. This trend is reflected even in the earlier years.  In both 2020-21 and 2021-22, the highest value of merchandise exports is from Gujarat followed by Maharashtra and Tamil Nadu.
Gujarat is the largest exporter for Petroleum products, Chemicals among others
Engineering Goods, Petroleum Products, Gems & Jewellery, Organic & Inorganic Chemicals, and Drugs & Pharmaceuticals are among the commodities that form most of the exports from India. In 2022-23, these five commodities accounted for 65% of India’s total merchandise exports. Here is a look at the contribution of the states towards these major export commodities.
Engineering Goods – Maharashtra & Tamil Nadu have the major share
Engineering Goods are the top-most commodity exported by India in terms of value. In 2022-23, engineering goods worth 106.5 billion USD were exported i.e., around 24% of the total exports in the year. Even in the previous two years, engineering goods were the top exporting commodity. Among the states, Maharashtra and Tamil Nadu are the top two exporters of engineering goods across the three years.
For the three-year period of 2020-21 to 2022-23, Maharashtra has exported 60.2 billion USD worth of engineering Goods. During the same period, the export value of this commodity by Tamil Nadu is 43.6 billion USD. Maharashtra & Tamil Nadu are the leading manufacturing states in the country, and this is evident from the value of exports of engineering goods by these two states.  Gujarat and Karnataka occupy the next two positions when the cumulative total for the three-year period is considered.
Petroleum Products – Gujarat has 81% share of total exports
Petroleum products have emerged as a major exporting commodity for India. We have highlighted the same in our earlier story on trends in India’s exports. However, this growth is largely due to the increase in exports by Gujarat because of the presence of large refineries in the state. The state has a near monopoly on the export of Petroleum products. Out of the 165 billion USD worth of petroleum products exports by India during the three-year period of 2020-21 to 2022-23, 134 billion USD is by Gujarat. Karnataka is a distant second with 11.8 billion USD worth of petroleum Product exports.
Gems & Jewellery – Maharashtra & Gujarat contribute 88% of the value of exports
The two states of Maharashtra & Gujarat have the major share in the export of Gems & Jewellery. Before the emergency of petroleum products as a major export commodity by India, Gems & Jewellery is the among the top-2 export commodities by India.  In fact, India is among the top-3 exporters of jewellery in the world.
However, this high value of exports is largely due to two states – Maharashtra & Gujarat. Mumbai and Surat are two major hubs for gems & jewellery in the country. This is reflected in the respective states having the major share in the export of this commodity.  For the period 2020-21 to 2022-23, the value of exports of this commodity by Maharashtra is 57.9 billion USD, followed by Gujarat with 32.1 billion USD. This is about 88% of the total exports of Gems & Jewellery during this period.
Organic & Inorganic chemicals – Gujarat has the major share, followed by Maharashtra
Gujarat has around 47% of the share of the total value of organic & inorganic chemicals exported by the country during 2020-21 to 2022-23. Maharashtra is the next highest exporter followed by Andhra Pradesh & Telangana.
Drugs & Pharmaceuticals – Gujarat, Maharashtra & Telangana account for 56% of the total exports
Compared to the other top export commodities, the share of states is more evenly distributed in the case of Drugs & Pharmaceuticals. However, the three states of Gujarat, Maharashtra & Telangana have a large share when compared to others. These are also the states with a large presence in the pharma sector & the big names in the industry. These three states have a near-equal share of the exports of Drugs & Pharmaceuticals.
Agriculture and textiles are other major commodity groups that have a higher value of exports. In the case of Agriculture, it is Cotton and Rice which are the major export commodities.
The data indicates that few states contribute towards a major share of the exports of India. Geography, Infrastructure, industrial history, human resources, etc are a few of the factors which enable these states to lead the export charts. Identifying products in each of the states which have export potential & creating the supporting infrastructure can go a long way in helping increase the state-wise exports and in turn exports of the country.
Featured Image:  Commodity Exports of India