Explained: India’s record $770 billion exports & how realistic is the $2 trillion dream
India’s exports are expected to hit a record high of $770.2 billion in the financial year 2022-23. The record number comes at a time when the global economy is witnessing a slowdown. India has also set a target of $2 trillion exports by 2030. So, how strong is the India export story and how realistic is this dream of $2 trillion? We look to understand this in the video below.
In this week’s episode of TOI Business Bytes, Madan Sabnavis, the Chief Economist at Bank of Baroda traces the journey of India’s exports and breaks down the growth in merchandise exports versus services exports. Interestingly, while exports will see a record number, merchandise exports have actually been contracting in the last few months.
According to Sabnavis, India has an advantage when it comes to services exports, but the government should continue to focus on merchandise exports. “We need to qualify that when we are talking of exports of goods and services, we've seen a differential performance of goods from services. While services is something which has definitely been increasing at a very steady rate, it's not always been so for goods. And that is where I think there could be concerns going ahead,” he tells TOI.
“For merchandise exports, we need to keep plugging to make sure that we're able to bring about higher rates of growth. Because at the end of the day, I think the overall Indian economy has to grow based on manufacturing,” he said. “If I'm going to concentrate a lot on manufacturing, which is where jobs are also being created, the SMEs are involved, I think we need to be looking in terms of our export growth being sustainable,” he notes.
Sabnavis also explains why electronics exports have surpassed that of garments in the financial year 2022-23. He talks extensively about the role of the Production Linked Incentive (PLI) scheme in propelling exports in various sectors and also explains what the next phase of this scheme should focus on.
This can be possible if the present government continues till that time. It's for the people to decide whether they want a stable govt. or a directionless hotchpotch govt at the center.
I wish India achieve the next target.
Previous regime worked upon corruption targets
Which modi have exceeded by huge margins
Great work being done by this government
Modiji is for development and making India the World Leader. Good people will definitely support him without sticking to any party. Jai Hind
This in undoubtedly a very big achievement. Once we reduce our imports to atleast 70% of our exports, we can truly be a self sufficient nation economically. We have to reduce our dependency on oil as its is approx. $200 billion annually. India should now focus on building or r&d base.
If Modi ji is allowed to continue as Prime Minister till 2030, certainly 2 trillion dollars as export target will not remain a mere dream.
This is only possibe during Nationalist BJP NDA............please vote for BJP NDA always for peace and unstoppable progress............
all is well, this decade is for India
More than a decade is for India.
If you really want that to be achieved vote for bjp. Thanks
Unfortunately during Licence Raj, manufacturing was totally neglected. Manufacturing is the backbone of the economy and all economies like USA, Japan, China, Korea, Europe grew at the back of their manufacturing. Manufacturing provides jobs for the less educated, while Services provide jobs for the higher educated. Manufacturing needs good infrastructure and the current government is providing that at a faster pace than before.
Extraordinary Progress in Bharat last 6 years, be it Infrastructure development, Economy, Business, Job creation, Education, Healthcare Internal Security , Defence & Exports. Great going Bharat. Keep it up
Mercandise exports are going down for the last 4 months and the trend may continue due to international recession.
Democracies have to grow first and then bring in the regulations. India brought in the regulations first and that destroyed any chances of growth. Now that the Nehrus and the Gandhis are out of the race, we have a promising future.
if there is a CAGR growth of 15% per annum , total export will cross the threshold of 2 trillion dollars in the next 7 years . Import will also increase, and indian participation in global trade will be 5%
Electronics exports were up 50% which is due to PLI scheme. Petroleum products exports were up by 40% which is due to Ukraine War. These are the reasons for increase.
India has a big potential & current government at the centre is doing an excellant work
I agree. 2 trillion export dream and all other visionary plans can be realised only if Modi and no one else, remains in power at least for 10 years further.
if this government will be repeated at 2024 india will be a actual world power in 2030, with highest growth rate, world's biggest Highway network, good public infrastructure like Railways, Roadways, better Internet connectivity. Digitised economy and with several PLI schemes india will become a world force in Electronics, Mobile phone manufacturing, Solar manufacturing, electric cars and several such manufacturing sectors. Make in india has started showing results india needed full majority and ... Read More
Without major land and labour reforms it will be difficult to achieve the target...also I don't know why are we rejoicing...Annual 770 billion dollar export is just about 1.5 month's export of China that too when its not at full steam...by the time we reach 2 trillion mark China will be doing 25 trillion...