PR No – 418
5th June, 2023
India’s Exports Likely to Touch USD 1000 Billion by 2024-2025: PHD Chamber
High growth export destinations and commodities to enhance India’s exports to new highs
Amidst the slowdown in the global demand, India’s exports are likely to touch US $1000 billion by 2024-25, said an analysis conducted by PHD Research Bureau, PHD Chamber of Commerce and Industry.
The dynamic policy environment provided by the government along with efforts of the exporters to connect with global value chains will enhance the export volumes in the coming times, said Mr. Saket Dalmia, President, PHD Chamber of Commerce and Industry, in a press statement issued here today.
Though some slowdown is seen in the short-term, till September 2023, due to the uncertainties and recessionary headwinds in some of the advanced economies, exports are expected to pick up significantly from the month of October 2023, said the industry body PHDCCI
The emerging high growth destinations such as Togo, Netherlands, Brazil, Israel, Indonesia, Turkey, Australia, South Africa, Saudi Arabia and Belgium and high growth export commodities such as Sugar and confectionary, Mineral fuel and oils, aluminum and articles, inorganic chemicals, ships, boats and floating structure, rubber and articles and optical, photographic, medical apparatus would enhance India’s export growth to new highs, said the industry body PHDCCI.
The top 10 highly growing export destinations have shown a consistent growth during the last five years (FY 2019 to FY 2023 average) including Togo (73%), the Netherlands (36%), Brazil (28%), Israel (27%), Indonesia (24%), Turkey (22%), Australia (20%), South Africa (19%), Saudi Arabia (16%) and Belgium (13%).
Exports to these countries have grown at high growth rate amidst the global economic slowdown. These countries are emerging major growth destinations for India’s exports though the volumes have to pick up in the coming times, said Mr. Saket Dalmia.
The top 10 highly growing export commodities have shown a consistent high growth during the last five years (FY 2019 to FY 2023 average) including Sugar and confectionary (43%), Mineral fuel and oils (36%), Electrical machinery and parts (27%), aluminum and articles (18%), inorganic chemicals, precious and rare- earth metals (16%) miscellaneous chemical products (16%), Cereals (14%), iron and steel (12%), ships, boats and floating structures (11%), rubber and articles (11%) and optical, photographic, medical apparatus (10%).
The high growth-high volume export commodities have significant potential to enhance India’s exports growth to new highs said Mr Dalmia.
India’s exports have increased from US $498 Billion in 2020-21 to US $770 Billion in 2022-23, said Mr. Dalmia
The growth of services during the last two years at 24% (average) is commendable as our services have shown a great resilience and price competitiveness in the global markets, said Mr. Saket Dalmia.
The growth of services exports will also be a major growth driver to achieve the ambitious targets of USD 1 trillion by 2024-25 and USD 2 trillion by 2029-30.
The launch of India’s new Foreign Trade Policy (FTP) 2023 with its five key elements of Duration, Dynamism, Decentralisation, Direction and Disaster proofing, is aimed at creating an enabling ecosystem for exporters. It shall bolster India’s export quantum while considering the size of the Indian economy and its manufacturing and service sector base, said Mr. Saket Dalmia.
The FTP 2023 aims to increase India’s competitiveness in the global markets by promoting and developing each state to be able to integrate with the global trade which is a move in line with India’s vision of becoming “Atmanirbhar” (self-reliant), said Mr. Dalmia.
Going forward, ease of doing exports with calibrated reforms by the government will be crucial to achieve the target of USD 2 trillion by 2030, said Mr. Saket Dalmia.
Full report attached
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Warm Regards
Media Division
PHD Chamber of Commerce and Industry