Indian Economy News

According to a PHD Chamber of Commerce and Industry report, service sector will help India to the US$ 2 trillion export aim by 2030

  • IBEF
  • November 28, 2023

A report by the PHD Chamber of Commerce and Industry suggested that the country could be able to reach its export goal of US$ 2 trillion by 2030 as a result of its service exports.

The report titled 'India's Emerging Export Dynamis' stated that in 2021–22, India's exports showed resilience among the top 20 exporters worldwide. This expansion, which has averaged 24% over the last two years, has been credited to the sector's robustness in the international market and competitive pricing, which positions it as a major force behind the ambitious export target.

It also focused on the consistent growth in India’s top 10 emerging export markets over the last five years. It also cited significant growth in exports to Togo, the Netherlands, and Brazil, among others. The report also called for government action to reduce business costs and improve the ease of doing business to maintain competitiveness.

Among the top 20 largest exporters, India's growth in exports in 2021 and 2022 was the highest, at 20% and 9.7%, respectively.

Mr. Sanjeev Agrawal, President of the PHD Chamber, stated that the export of various commodities such as sugar, fuels, aluminium, and medical apparatus has seen high growth, benefiting from the dynamic policy environment and integration with global value chains.

He also stated that the rate of exports was slowing down in recent months following a robust recovery from the pandemic's lowest points; still, exports of goods and services are exhibiting notable indications of recovery following a brief period of decline, with October 2023 exports increasing by 9%.

October saw a new high for India's merchandise trade deficit, driven by rising oil and gold imports, geopolitical concerns, and global economic challenges.

According to data from the commerce ministry, the trade imbalance increased to US$ 31.46 billion last month, with imports totaling US$ 65.03 billion and exports totalling US$ 33.57 billion. October of the previous year saw a US$ 26.31 billion trade imbalance.

According to Mr. Ranjeet Mehta, Executive Director of PHD Chamber, with its emphasis on duration, dynamics, decentralisation, direction, and disaster proofing, the upcoming Foreign Trade Policy (FTP) 2023 is anticipated to increase India's export potential and support the country's self-reliant ("Atmanirbhar") goal.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.