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.)

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