Merchandise exports are expected to be around $470-480 billion in FY23: Trade Secy



India’s merchandise exports are expected to be around $470-480 billion for the current financial year compared to $420 billion in 2021-22, Commerce Secretary BVR Subrahmanyam said on Tuesday.

The secretary also said the trade deficit, which crossed $100 billion in the first four months of the current fiscal year, was not going to cross a “level of discomfort”.

Speaking to reporters, Subrahmanyam said trade in goods in 2022-2023 would be $470-480 billion and the services sector would likely contribute another $280 billion.

“We’re pretty much on track,” he said, adding that the exact target for the exercise may be announced later.

India’s overall exports (goods and services) hit a record high of $669.65 billion in April-March 2021-22, jumping 34.50% from the same period last year.

Regarding the trade deficit, the secretary said that it is likely to moderate in the coming months due to lower prices for oil and other commodities in the global market.

“I think overall we’re not going to cross a level of discomfort… We’re looking at it very closely,” Subrahmanyam said.

The merchandise trade deficit in July 2022 was USD 31.02 billion, bringing the gap between imports and exports to USD 100.01 billion in April-July 2022-23.

Meanwhile, Commerce and Industry Minister Piyush Goyal has released a dossier on restructuring the Ministry of Commerce to make it “future-ready” and build an ecosystem to achieve the export target of $2 trillion by 2030.

The Secretary further said that there is a huge opportunity for India as many Western countries are considering shifting their operations from China.

China’s move is huge, he said, adding that many companies are looking to shift their manufacturing out of China and relocate to India.

Subrahmanyam said Japanese clothing retailer Uniqlo wanted to move its factory to India from China and planned to invest $1 billion.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and up-to-date with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor