Piyush Goyal said that the sectors which will help in boosting exports include manufactured goods, agri-products, labour-intensive goods and high-quality products. , Photo credits: K. Murali Kumar
India’s goods and services exports are expected to cross $750 billion this fiscal, despite global economic uncertainties, Commerce and Industry Minister Piyush Goyal said on Saturday.
In 2021-22, the country’s exports of goods and services are set to reach an all-time high of USD 422 billion and USD 254 billion, respectively, taking total shipments to USD 676 billion.
“Last year we crossed a record $650 billion in goods and services (exports). This year, we are aiming for an even bigger record… We have already crossed last year’s figure… Hopefully we will cross $750 billion (this year).”
India’s exports fell 6.6% to $32.91 billion in January for the second month in a row due to lack of global demand.
Goods exports grew 8.5% to $369.25 billion during April-January this fiscal, while services exports were estimated at $272 billion during the period.
The minister said the sectors which would help in boosting exports include manufactured goods, agriculture products, labor intensive items and high quality products.
He expressed confidence that India’s goods and services exports would reach $2 trillion by 2030.
Responding to a question about the growing trade deficit with China, he said the government was taking steps to promote domestic manufacturing of quality goods which would help curb imports.
He said that by 2000-01, the total India-China trade was around $1 billion and even as of 2004 the trade was “probably” in the range of $4 billion and the trade deficit was around $1 billion.
“After 2004, to engage more with China, there was almost an outreach to attract Chinese goods to the country in a big way. I don’t want to politicize this subject… But between 2004 and 2014, we saw that trade grew very fast and the trade deficit increased almost 35 times,” Mr Goyal said.
He said that the previous governments should be held accountable for the spurt in the trade deficit with China.
“But the nation has already held him accountable on more than one occasion and will likely continue to do so,” he added.
However, now the government is creating that ecosystem to promote domestic manufacturing, he said.
The minister said, “We are working on bringing quality consciousness in the country.”
During April-December 2022-23, India’s exports to China stood at $11 billion, while imports totaled $75.9 billion. The trade deficit stood at $64.9 billion.
On the semiconductor industry, he said a major announcement has already been made to set up a semiconductor facility in Gujarat and several other semiconductor companies around the world are in talks with the Ministry of Electronics and Information Technology.
On free trade agreements, he said talks with countries including the UK and Canada were going “very well”.
“We are on the right track and these agreements should be equitable and beneficial to both,” Mr Goyal said.