India’s exports have witnessed a remarkable surge, surpassing the previous year's record numbers. According to the latest trade data, India's exports in the first 11 months of the current financial year have already crossed $672 billion, reaching $702.88 billion, powered by services. The commerce secretary, Sunil Barthwal, expressed confidence in exceeding the target of $750 billion in goods and services exports in FY23.
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| India's Exports Expected to Exceed $750 Billion in FY22-23 Driven by Services |
Although global headwinds have impacted merchandise exports, India’s cumulative goods exports have grown by 7.55% to $406 billion in the first 11 months of the current financial year. Barthwal believes that the number will surpass the record of $421.8 billion in merchandise exports in 2021-22, with a month remaining in this financial year.
In contrast, services have performed exceptionally well, helping India achieve positive merchandise exports growth of 7.55% in 2022-23, which experts believe is no small feat. The Federation of Indian Export Organisations (FIEO) president, A Sakthivel, described the aggregate export of $703 billion as "robust" in the current global scenario. Sakthivel added that the country is expected to end 2022-23 with exports of $770-780 billion, exhibiting a high growth of 15-16%.
Despite a dip in merchandise exports in three consecutive months, India's overall exports continue to grow. Furthermore, gold imports have also contracted, along with other sectors like engineering goods, cotton yarn, iron ore, plastic, gems and jewelry. On the positive side, petroleum products, chemicals, pharma, electronic goods, rice, and ready-made garments have seen positive export growth. Energy exports and mobile phone exports from India have also witnessed an upward trend.
The commerce secretary praised Indian exporters for keeping the momentum going despite global headwinds, with services exports doing extremely well. He added that India is set to post record exports in both goods and services, with goods exports performing even better if not for global headwinds.
In conclusion, India's exports have demonstrated remarkable resilience in the face of geopolitical uncertainties, rising inflation, contraction in demand, and high-interest rates. Despite a dip in merchandise exports in recent months, the country is expected to achieve record exports in both goods and services, exhibiting high growth.
Despite the challenges posed by the global headwinds, India's robust export performance highlights the resilience of its economy and the competitiveness of its products and services in the international market.
The growth of India's exports is driven by both goods and services, with services being the main driver of growth. According to the latest trade data, India's merchandise exports continue to grow despite the global headwinds, reflecting the country's ability to diversify its export base and tap into new markets. India's cumulative goods exports grew 7.55% to $406 billion in the first 11 months of the current financial year, and the country is poised to surpass the record $421.8 billion of merchandise exports achieved in 2021-22, with a month remaining in this financial year.
India's services exports have also performed well, with the country on track to achieve its target of $350 billion in services exports in 2022-23. The growth of India's services exports has been driven by sectors such as IT and ITeS, pharma, and engineering services, which have continued to show strong demand despite the challenges posed by the global pandemic.
The rise in India's exports is a significant achievement, given the challenges faced by the global economy in the wake of the Covid-19 pandemic. The fact that India has been able to maintain its export growth despite the ongoing global headwinds reflects the country's ability to adapt to changing market conditions and leverage its competitive advantages in various sectors.
In conclusion, India's export growth is a positive development for the country's economy and its global standing. The growth of India's exports in goods and services is a testament to the country's resilience and competitiveness in the international market. As India continues to diversify its export base and tap into new markets, the country is well-positioned to achieve its target of $750 billion in overall exports in FY23, and to continue on a path of sustained economic growth and development.
