Corporates hail India's export surge: May exports up by 10.25 pc YoY

He expressed confidence that by 2030 Indias goods and services exports would touch 2 trillion

The MEIS was replaced with the Remission of Duties and Taxes on Exported Products (RoDTEP) programme from January 2021.

India's merchandise exports declined by 2.6% in September, reaching $34.5 billion. However, a 15% decrease in imports helped narrow the trade deficit to a five-month low of $19.4 billion. The government revised the export growth in August to 3.88% from an earlier reported contraction of 6.8%. Despite the decline, officials remain optimistic about positive growth in the coming months. The gems and jewellery sector was hit hard by the Russia-Ukraine conflict and sanctions on Russia, resulting in a 16.03% contraction in exports.

India has identified electronics, engineering goods, textiles, marine & agriculture, toys, pharmaceuticals, and ecommerce as the sectors that could help achieve its $1-trillion goods export target by FY30. The commerce and industry ministry study predicts that these sectors could generate around $670 billion of exports by 2029-30.

In 2022-23, processed food exports from India amounted to $10.6 billion, increasing at 22.4% compound annual growth rate in five years while the overall agricultural and food exports were around $53 billion, growing 6% year-on-year. India aims to increase agricultural exports to $100 billion by 2029-30 from around $53 billion now.

Shrinking goods exports could dent the manufacturing sector and slow India’s growth momentum at a time when private investments— another key growth driver—is yet to take off in a big way

India's Commerce and Industry Minister, Piyush Goyal, announced that exports of goods during the 2022-23 fiscal year have reached $447bn (compared with $422bn sampled earlier in 2021-22). The final data for goods imported and exported will be collated by April 2023. Besides, service exports were expected to surpass $320bn in 2022-23. Goyal said that although there have been global obstacles, including surges in raw materials and restrictions on wheat exports, India's overall expo growth remains around 6%.

India's engineering exports to Russia doubled to USD 1.22 billion in the 2023-24 fiscal, according to the Engineering Export Promotion Council (EEPC). Exports to the US fell by 7% to USD 15.95 billion, while China's shipments saw a marginal decline to USD 2.38 billion. Exports to the UAE and Australia, with which India signed an FTA, remained positive.

Exporters in India have expressed concerns about the slow growth of labour-intensive exports such as garments, gems and jewellery, marine products, and plastics compared to countries like Bangladesh, China, and Vietnam. The Federation of Indian Export Organisations (FIEO) analyzed the sector-wise export performance over the past five years and found that India's market share in labour-intensive sectors has been declining. However, technology-driven sectors like machinery, auto components, electrical and electronics goods have seen a significant surge in global demand.

India's engineering goods exports faced a 3% year-on-year decline in November, totaling $7.85 billion, according to a report by the Engineering Export Promotion Council of India (EEPC). The dip is attributed to disruptions caused by the festive season in key engineering export regions, particularly in the northern and western parts of the country.