India’s exports may hit $900 bn despite global headwinds in FY24.

India’s exports of goods and services are predicted to reach $900 billion in the current financial year, according to the Federation of Indian Export Organisations (FIEO). Despite global headwinds, this increased from $770 billion in the previous year. Merchandise exports are expected to grow between $495 billion and $500 billion. In comparison, services exports are set to touch $400 billion in the year ending March 2024, said Ajay Sahai, director general of FIEO. Despite the possible impact of the conflict in Ukraine and a global slowdown, overseas demand remains strong in many markets.
Trade Minister Piyush Goyal urged exporters to explore new markets given the possible impact of war in Ukraine and a global slowdown. He warned that the times ahead would be insensitive, citing the fallout from the conflict. Prime Minister Narendra Modi’s government has set an export target of $2 trillion by 2030, offering benefits to boost electronics, engineering, pharmaceutical, and other goods exports.
Although exports of engineering, gems, and jewellery goods have slowed in the last few months, agricultural, petroleum, and electronic goods exports have remained strong in the Western markets due to pricing factors. Meanwhile, exports to Asian and Middle East countries have grown substantially.
Sahai, who was part of a 50-member business delegation to Russia last week, said there was a huge demand for Indian goods, particularly food, after the Western sanctions imposed over the Ukraine war. 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. However, Indian officials have said Russia is reluctant to accept payments in the rupee currency for its oil exports. India has not explicitly condemned Russia’s February 2022 invasion of Ukraine and has called for dialogue to resolve hostilities.