India’s annual exports of products and services, up from $770 billion the year before, might total $900 billion in the current fiscal year.
This indicates that India remains resilient despite global challenges, according to a top official of a grouping of exporters, reported the Financial Express.
Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO), revealed that merchandise exports might increase to between $495 billion and $500 billion in the year ending March 2024, while services exports could reach $400 billion.
The minister of trade, Piyush Goyal, urged exporters to consider emerging markets because of the potential repercussions of the situation in Ukraine and a global recession.
Speaking late at a business gathering, Goyal forewarned of the effects of the conflict. “The times ahead are going to be very, very tough,” he remarked.
The government of Prime Minister Narendra Modi has established a target of $2 trillion in exports by 2030 and is offering incentives to promote the sale of merchandise, including electronics, engineering, medicines, and other products.
India’s exports have surged by over $200 billion in the last two years, mostly due to a boom in exports of software, cell phones, crops, and petroleum products.
However, the export of commodities for engineering, gems, and jewelry of entities for engineering, gems, and jewelry has slowed recently.
According to exporters, shipments to Asian and Middle Eastern countries have surged dramatically, while shipments of gadgets, petroleum, and agricultural items have remained strong in Western markets due to pricing difficulties.
Following the Western sanctions imposed due to the Ukraine war, Sahai, a member of a 50-member business delegation to Russia last week, claimed that there was a huge demand for Indian goods, particularly food.
To expedite the exports of Indian goods to Russia, Sahai claimed that “Indian exporters are optimistic that the two nations will shortly roll out an arrangement enabling payment in local currencies.”
However, according to Indian officials, Russia hesitated to accept rupee payments for its oil exports.
India has urged talks to end tensions but has not openly denounced Russia’s invasion of Ukraine in February 2022.