(MENAFN- KNN India)
New Delhi, Jun 22 (KNN)
Federation of Indian Export Organisations (FIEO) Director General and CEO Ajay Sahai has stated that Indian exports must grow at a Compound Annual Growth Rate (CAGR) of 12.5 per cent to achieve the USD 2 trillion export target by 2030.
This assessment comes as current growth rates fall short of the required pace.
During a meeting with FIEO members in Kolkata, attended by Directorate General of Foreign Trade (DGFT) official SK Sarangi, Sahai presented an analysis of India's export performance.
He noted that exports grew at a CAGR of 8.2 per cent from fiscal year 2018 to 2024, which is insufficient to meet the 2030 goal.
Recent export figures show modest growth, with values of USD 778 billion in 2023-24, USD 776 billion in 2022-23, and USD 676 billion in 2021-22.
Sahai highlighted that the Red Sea crisis had negatively impacted exports in the last fiscal year.
He also pointed out disparities in export performance across sectors, with capital-intensive industries showing strong growth while labour-intensive sectors underperformed global trends.
In the capital-intensive sector, electronics exports have achieved a 22 per cent CAGR, significantly outpacing the global import CAGR of 7 per cent.
Similarly, machinery and mechanical equipment exports have grown at 7 per cent CAGR, compared to global import CAGRs of 4 per cent and 3 per cent respectively.
However, labour-intensive sectors such as footwear, gems and jewellery, and apparel have not kept pace with global import trends. Sahai emphasised the need to align with global trends to boost labour-intensive exports.
Regarding trade agreements, Sahai reported that India has signed 19 Free Trade Agreements (FTAs), with negotiations in advanced stages with Oman, Russia, Armenia, Kazakhstan, and the European Union.
This report provides an overview of India's export landscape, highlighting both challenges and opportunities as the country aims to significantly increase its global trade presence by 2030.
The disparity between current growth rates and the targeted CAGR underscores the need for strategic interventions and sector-specific approaches to boost India's export performance in the coming years.
(KNN Bureau)
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