India is on its way to increase its exports by around three times to reach the target of $2 trillion by 2030 despite the imposition of restrictions on exports of some items to rein in inflation on the domestic front and adverse geopolitical situation, Commerce and Industry Minister Piyush Goyal said on January 6, 2024.
An important aspect of a nation’s balance of payments is its balance of trade. The balance of trade represents the difference between how much a country imports and how much it exports and how much money flows in by way of FDI, FII, or in the form of gifts, aids, and other remittances. If the value of a country’s imports exceeds the value of its exports, the country has a negative balance of trade, also known as a trade deficit. When a nation’s current account is in deficit, it has to borrow money from other countries to fund its deficit. Over time, economic growth can slow if the deficit country can’t get out of debt. The foreign trade policy of the Government of India provides a set of guidelines that help a country achieve its domestic production and export goals and makes several investor-friendly policies to attract foreign investments. However, given the challenges of sluggish economic growth and geopolitical realities, there are bound to be challenges in times ahead. India faces significant challenges in the area of trade policy, FDI, and FII due to the global economic slowdown, increasing protectionism, the stalled mega-trade deals that could in time be revived, and perhaps more importantly, its domestic preoccupations.
To cut short the length of this article we made the following three posts for the convenience of the readers. Click and Read;
- Challenges to be addressed in upcoming FTP and Recent trends
- Challenges to be addressed in upcoming FDIs and Recent trends
- Challenges to be addressed in upcoming FIIs and Recent trends
Overall recent trends:
Over the last three decades, India’s services export growth not only outpaced merchandise export growth, but also captured a larger share of world exports. The estimated value of services exported for January 2024 is USD 32.80 Billion, as compared to USD 28.00 Billion in January 2023. The estimated value of services imported for January 2024 is USD 16.05 Billion as compared to USD 14.83 Billion in January 2023. Analysts say that despite of slowdown in the global demand, India’s exports are likely to touch US $1000 billion by 2024-25. India’s overall exports (Merchandise and Services combined) in January 2024 are estimated to be USD 69.72 Billion, exhibiting a positive growth of 9.28 per cent over January 2023. Overall imports in January 2024 are estimated to be USD 70.46 Billion, exhibiting a positive growth of 4.15 per cent over January 2023. Additionally, we are also home to the third-largest start-up ecosystem globally. This growing momentum can help India achieve its near-term service export goal of USD400 billion in the current fiscal, and a target of 1 trillion in exports by 2030.
The Indian government aims to boost domestic manufacturing and increase exports to USD 500 billion by 2030 from 10-11 sectors, including automobiles, Pharma, textiles, medical devices, and chemicals.28 Dec 2023.
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