India’s exports of goods and services are expected to reach $900 billion in the current financial year, up from $770 billion in the previous year, according to Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO). This is largely due to the resilience of Indian exports despite the global headwinds and the increase in demand for agricultural, petroleum, and electronic goods in Western markets. Sahai predicts that merchandise exports could expand to between $495 billion and $500 billion, while services exports could touch $400 billion in the year ending March 2024.

While addressing an industry event, Trade Minister Piyush Goyal urged Indian exporters to explore new markets in light of the possible impact of war in Ukraine and a global slowdown. Goyal warned that the times ahead will be tough due to the conflict’s fallout. However, the Indian government remains optimistic about exports and has set an export target of $2 trillion by 2030. This goal will be achieved by boosting exports of electronics, engineering, pharmaceutical, and other goods.

The surge in exports of software, mobile exports, and agricultural and petroleum products has led to the increase in India’s exports by over $200 billion in the last two years. Although exports of engineering, gems, and jewellery goods have slowed down in the last few months, overseas demand remains strong in many markets.

Sahai, who was part of a 50-member business delegation to Russia, said there was a huge demand for Indian goods, particularly food, after the Western sanctions imposed over the Ukraine war. He also expressed his hope that both countries would soon work out a mechanism allowing payments in local currencies that would facilitate the shipments of Indian goods to Russia. However, Indian officials have said that Russia is reluctant to accept payments in the rupee currency for its oil exports. It is worth noting that India has not explicitly condemned Russia’s February 2022 invasion of Ukraine and has called for dialogue to resolve hostilities.

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