India’s goods and services exports are expected to cross USD 800 billion this fiscal despite global challenges, Commerce and Industry Minister Piyush Goyal said on Saturday.

Commerce and Industry Minister Piyush Goyal (x/PiyushGoyal)

How much did India export last year?

In 2023-24, the shipments stood at USD 778.2 billion (goods USD 437.1 billion and services USD 341 billion).

What is India’s current exports situation?

He said that the global situation is serious as war is still ongoing between Ukraine-Russia and Israel-Hamas, and the Red sea crisis.

The minister added that there are also elections in some of the major democracies like in Europe.

Also Read: India plans to expand production-linked incentives for small textile firms: minister

“In such a situation it’s a positive sign that our exports are growing (9 per cent growth in May) and this also reflects that the world wants to do trade and investments with India. We are confident that this year we will have over USD 800 billion exports and it will be a historic record,” Goyal told reporters here.

He was here to participate in a programme of gems and jewellery exporters.

What is the government doing to promote exports?

Goyal added that for the USD 800 billion exports, the ministry is working on specifics with Indian missions abroad and export promotion councils.

He added that last year the current account deficit (CAD) has also reduced…our exports will increase, manufacturing will get a boost

India recorded a current account surplus of USD 5.7 billion or 0.6 per cent of GDP in the March quarter. This is the first time in ten quarters that the crucial metric of the country’s external strength has turned into surplus mode.

Also Read: India’s May exports up 9.1% y/y as outlook improves

In the year-ago period, the current account deficit stood at USD 1.3 billion or 0.2 per cent of GDP, and the same was USD 8.7 billion or 1 per cent of GDP in the preceding quarter ending December 2023.

India’s merchandise exports rose by 9.1 per cent to USD 38.13 billion in May even as the trade deficit widened to a seven-month high of USD 23.78 billion during the month, according to the latest government data.

He added that focus on electric vehicles will help in reducing oil imports.

The ministry is also holding a series of meetings with plantation boards, including spices, rubber, tobacco, tea and coffee, to promote exports especially those of value added goods.

What is the issue with India’s diamond polishing industry?

Further, he said that India has taken up on priority the issue of ban on imports of Russian-origin unpolished diamonds by the European Union (EU) and G7 nations to protect the interest of the domestic diamond polishing industry.

“Our ministry and the gems and jewellery export promotion council are continuously in touch with the European Union and G7 nations,” Goyal said, adding in the last meeting, India took up the matter strongly.

Also Read: Gujarat government signs MoUs with IBM, Microsoft, and NASSCOM for AI development

“Still we are in touch with them to ensure that Indian industry does not have an impact,” the minister said.

G7 countries – Canada, France, Germany, Italy, Japan, the UK, and the US, are major markets for Indian diamond exports.