FIEO Optimistic on Export Front after including Growth in Services Sector

[FIEO Press Release/15.03.2023]

Hailing the aggregate export of US$ 703 billion recorded in the first 11 months of the current financial year, Dr A Sakthivel, President, FIEO said that we expect 2022-23 to end up with export of US$ 770-780 billion, which will be over US$ 100 billion as compared to aggregate export of US$ 672 billion recorded in 2021-22, exhibiting a high growth of 15-16%. President, FIEO said that India is not only one of the fastest growing economies, but also one of the top performing nations in exports as well.

These figures assume greater significance when seen in the backdrop of global headwinds accentuated by geopolitical uncertainties, rising inflation, contraction in demand and high interest rates. Many countries have shown sharp decline in their exports recently.

President, FIEO said that we should aim at US$ 900-950 billion exports in 2023-24 despite modest increase in world trade.

The better market access provided through FTAs/CECA, additional production coming out of industries under PLI, realignment of value chain by passing China, China+1 policy of global companies, increasing exports through e-Commerce will help our exports in 2023-24. Services will continue to be the driver of exports and besides, IT & ITES, travel and hospitality, health & medical tourism, audit & accounting sector, financial services and education services besides films & animation will push our services exports. The competitiveness of exports will go with reduction in the logistics cost as we are seeing all round development in infrastructure and increasing digitization of the process, said FIEO Chief.

Some of the employment intensive sectors like textiles, plastics & linoleum and engineering sector have been impacted due to contraction in demand with rising inflation and increasing recession in some of the markets. However, we expect them to recover in next few months.