<h1>External trade recovery spurs reserves accumulation and improves external resilience despite emerging global liquidity and commodity risks.</h1> External trade recovered strongly in 2021-22 with merchandise exports and imports surpassing pre pandemic levels due to revived global and domestic demand and government initiatives; exports reached over 75% of the US$ 400 billion target and agriculture exports grew notably. Net capital flows financed a modest current account deficit, producing a balance of payments surplus and rapid accumulation of foreign exchange reserves above US$ 600 billion, while external debt rose modestly and vulnerability indicators improved. The Survey warns of risks from global liquidity tightening, commodity price volatility, freight costs and COVID 19, and recommends pursuing free trade agreements to aid export diversification.