Indian exports may touch $90 billion in FY 24, says export body

4 May 2023 , 12:13 PM

 India’s exports of products and services could reach $900 billion in the current fiscal year, up from $770 billion in the year prior. According to Ajay Sahai, director general of the Federation of Indian Export Organizations (FIEO), merchandise exports might increase to between $495 billion and $500 billion in the year ending March 2024, while services exports could reach $400 billion.

He noted that the demand from abroad is still high in several markets.

However, Piyush Goyal, the minister of trade, urged exporters to look into new markets due to the potential effects of the Ukrainian conflict and a global slowdown.

Goyal warned of the consequences of the battle when speaking at an industry gathering late on Wednesday. ‘The times ahead are going to be very, very tough,’ he added.

The administration of Prime Minister Narendra Modi has set an export goal of $2 trillion by 2030 and is providing incentives to encourage the sale of goods including electronics, engineering, pharmaceuticals, and other items.

Over the past two years, India’s exports have increased by more than $200 billion, primarily due to a surge in the export of software, mobile devices, agricultural goods, and petroleum products.

However, in recent months, the export of goods related to engineering, gems, and jewellery has slowed.

Due to pricing issues, exports of electronics, petroleum, and agricultural products have remained robust in Western markets while shipments to Asian and Middle Eastern nations have increased significantly, according to exporters.

Following the Western sanctions imposed due to the Ukraine war, Sahai, who was a member of a 50-member business delegation to Russia last week, claimed that there was a huge demand for Indian goods, particularly food.

‘Indian exporters are hopeful that both countries will soon work out a mechanism allowing payments in local currencies that would facilitate the shipments of Indian goods to Russia,’ Sahai told ET.

However, according to Indian officials, Russia was hesitant 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.

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