Driving India’s Goods Export Growth
Why in news?
India has identified six critical sectors that would play a significant role in its exports.
Relevance:
GS-03 (Economy, Government policies and interventions)
Key highlights:
- A study conducted by the Ministry of Commerce and Industry highlights the potential of these sectors to contribute nearly 70% of the target, amounting to $670 billion in exports by FY2030, compared to the country’s total goods exports of $451 billion in FY2023.
- The said Six critical sectors are: Engineering Goods, Pharmaceuticals, Electronics, Textiles, Marine & Agriculture, Toys
Current status of Indian exports:
- The current state of Indian exports reveals a slowdown in both goods and services.
- Goods exports experienced a significant 22% decline in June 2023, marking the steepest fall in 37 months, with total export value reaching USD 32.7 billion, the lowest since October 2022.
- Similarly, services exports witnessed a slowdown, with earnings growing by only 5.2% to USD 80 billion in the first quarter of 2023-24, contrasting with the substantial growth observed in the previous year.
- Factors such as reduced global oil prices and sanctions on Russian oil shipments have contributed to the decline in petroleum exports, while the World Trade Organisation’s forecast of slower global trade growth in 2023 is shaping India’s export outlook.
- As per the new Foreign Trade Policy, India aims to achieve a target of USD 2 trillion in exports by 2030, with both goods and services contributing equally.
