Merchandise exports likely to touch $450 bn this fiscal: FIEO

New Delhi, Feb 23 (KNN) India’s merchandise exports in the current financial year are expected to touch USD 440-450 billion, registering at least 5 per cent year-on-year growth, Federation of Indian Export Organisations (FIEO) said on Wednesday.

The country’s merchandise exports in FY22 had touched a record high of USD 420 billion. However, imports have also been on the rise due to higher demand following recovery in some industries post the covid-induced lockdown.

Speaking at the side-lines of FIEO’s Foundation Day, A. Sakthivel, president, FIEO said the aggregate exports of the country in the current fiscal year is expected to be between USD 780 billion and USD 800 billion exhibiting a growth of about 12 per cent over the record exports of USD 672 billion in 2021-22.

“A double-digit growth in exports, when the global situation is becoming tougher and global trade moderating, is encouraging particularly as many of our competing countries are witnessing sharp decline in their exports. The merchandise exports are likely to be between USD 440-450 billion while services exports are expected to be between USD 340-350 billion," he said.

A report published by the Bank of Baroda pointed out that “With the world economy slowing down, demand for imports in general will be impacted, thus hurting exports growth. The China factor, however, can turn things the other way, though presently the pace of recovery is uncertain.

On the other hand, growth of 6-6.5 per cent in India will necessitate higher growth in imports and push up the bill. “On the positive side benign commodity prices will work to our advantage. On the whole however, the trade deficit will remain elevated," the report added.  (KNN Bureau)