New Delhi: The global slowdown has prompted the government to focus on higher services exports, which are expected to grow by nearly 20% to $300 billion this year. Goods exports are likely to target 10-12 per cent after a jump of 40 per cent during the last fiscal.
Commerce departmentThe target company is keeping an eye on them before announcing the first quarter figures.
Signs of moderation in exports were visible during May when it rose a little over 15%. With interest rates rising in the US and other parts of the world in the wake of high inflation, export demand is expected to slow down. This is especially after the high growth last year, in which the value of shipments increased to $418 billion. In addition, the ongoing Russia-Ukraine conflict is taking a toll.
world trade organization ,world trade organization) has also lowered the estimate for the year. In April, it slashed the projection for 2022 to 3% from its earlier forecast of 4.7%, pointing to the ongoing war in Ukraine currently.
Government sources said the focus is on increasing exports of services, which have remained strong, especially in sectors such as travel and tourism performing well after the restrictions. covid being removed in most parts of the world.
On the goods side, during recessions, luxuries and discretionary spending generally take a beating, which may be reflected in exports of gems and jewelery and textiles. While exports of wheat and some other agricultural products picked up in March-April, the restrictions will have some effect. But, given their low share of India’s exports, they are unlikely to make a big dent.
The government is hoping that some free trade agreements (FTAs) – such as those with the UAE and Australia – provide some thrust as it seeks to create a more sustainable strategy for double-digit exports in the coming years. While the UAE Agreement already exists, FTA With Australia expected to be operational later during the year, once endorsed by the Australian Parliament.
Commerce departmentThe target company is keeping an eye on them before announcing the first quarter figures.
Signs of moderation in exports were visible during May when it rose a little over 15%. With interest rates rising in the US and other parts of the world in the wake of high inflation, export demand is expected to slow down. This is especially after the high growth last year, in which the value of shipments increased to $418 billion. In addition, the ongoing Russia-Ukraine conflict is taking a toll.
world trade organization ,world trade organization) has also lowered the estimate for the year. In April, it slashed the projection for 2022 to 3% from its earlier forecast of 4.7%, pointing to the ongoing war in Ukraine currently.
Government sources said the focus is on increasing exports of services, which have remained strong, especially in sectors such as travel and tourism performing well after the restrictions. covid being removed in most parts of the world.
On the goods side, during recessions, luxuries and discretionary spending generally take a beating, which may be reflected in exports of gems and jewelery and textiles. While exports of wheat and some other agricultural products picked up in March-April, the restrictions will have some effect. But, given their low share of India’s exports, they are unlikely to make a big dent.
The government is hoping that some free trade agreements (FTAs) – such as those with the UAE and Australia – provide some thrust as it seeks to create a more sustainable strategy for double-digit exports in the coming years. While the UAE Agreement already exists, FTA With Australia expected to be operational later during the year, once endorsed by the Australian Parliament.