New Delhi: India's exports have demonstrated resilience among the world's top 20 exporters in 2021-22, according to a PHD Chamber of Commerce and Industry report released on Thursday. The report, 'India's Emerging Export Dynamis', expects that robust service exports could push the country to achieve the $2 trillion export target by 2030.
This growth, an average of 24% over the past two years, has been attributed to competitive pricing and resilience in the global market, positioning the sector as a key driver for the ambitious export goal. However, the report has called for government action to reduce business costs and enhance ease of doing business to maintain competitiveness.
Highlighting consistent growth in India's top 10 emerging export markets over the last five years, the report cites significant growth in exports to Togo, the Netherlands, and Brazil, among others.
The growth of exports during 2021 and 2022 at 20% and 9.7% respectively was the highest among the top 20 leading exporters, it added.
Export of commodities such as sugar, fuels, aluminum, and medical apparatus has seen high growth, benefiting from the dynamic policy environment and integration with global value chains, as noted by Sanjeev Agrawal, president, PHD Chamber.
"After a strong rebound from the depths of the pandemic, the pace of exports was slowing during the past few months, however, exports of goods and services are showing signs of significant revival after a brief spell of slowdown as October 2023 exports picked up by 9%," he added.
India's merchandise trade deficit widened to a record high in October due to surging gold imports and oil prices, exacerbated by global economic challenges and geopolitical tensions.
The trade deficit widened to $31.46 billion last month, with imports at $65.03 billion and exports at $33.57 billion, according to data from commerce ministry.
In October last year, trade deficit stood at $26.31 billion.
The forthcoming Foreign Trade Policy (FTP) 2023, with its focus on Duration, Dynamism, Decentralisation, Direction, and Disaster proofing, is expected to boost India's export capacity, aligning with the nation's self-reliant ("Atmanirbhar") vision, as stated by Ranjeet Mehta, Executive Director of the PHD Chamber.