“Governments can try to open up their markets through FTAs, but it is in the hands of private sector participants to take advantage of them,” the study said, predicting that global economic growth will continue to grow by 2023. If not, he stressed that the outlook for exports next year could be flat.
New Delhi recently signed trade deals with the UAE and Australia and is in talks with the UK, EU and Canada on similar deals.
“When the base (global growth and global trade) is not growing, export growth must come primarily through market share gains,” he said.
India achieved record annual merchandise exports of $422 billion in its 22nd fiscal year. The Netherlands has displaced China from her third spot as India’s export destination from April to December 2023, with India gaining shares from China and the United States while South Africa, Brazil and Saudi Arabia share rise. We have diversified our export destinations over time.
“New diversified markets such as Brazil, South Africa and Saudi Arabia have increased exports by up to 2x…Ongoing trade talks with the UK, EU, Canada, Israel and others have also added further impetus to exports. ,” said A Sakthivel, president of the Federation of Indian Export Organizations.
“However, the global economy is starting to face formidable headwinds, and the knock-on effect of the slowdown in global trade is starting to be reflected in India’s commodity export growth, which will see a slowdown in pace in 2022,” it said. , productivity, technology, and innovation to boost exports, the study said:
According to the study, “significant advances” in exports were registered in the pharmaceuticals, pharmaceuticals, electronic products, engineering products and organic and inorganic chemicals sectors in 2022. These sectors maintain their growth momentum despite global headwinds in the first half of 2023. India’s pharmaceutical exports increased despite Covid impacting supply chain disruptions.
Growth-sensitive non-oil and non-gold imports may not see a significant slowdown as India’s growth remains resilient, the study suggests.
Limited progress in multilateral trade negotiations at the World Trade Organization has also been seen as “favorable” by trading countries, as FTAs are easier to negotiate and offer flexibility to factor in geopolitical factors. I also mentioned that this is one of the reasons for the increase in FTAs, as they are being watched. Considerations.
For service exports, the downside risks are exogenous factors and a challenging economic outlook in advanced economies.
