India’s goods and services exports could cross $800 billion in FY25, 3% higher from the previous fiscal year, despite the persistent geopolitical challenges, commerce and industry minister Piyush Goyal said Saturday.
The global situation is serious, with two ongoing conflicts, apart from the Red Sea crisis and elections in about 60% of the world’s democracies this year and the next.
“We are confident we will get over $800 billion exports this year, with both goods and services growing – we will create a record,” Goyal said at an event organised by the Gems and Jewellery Export Promotion Council. India’s goods and services exports in FY24 hit an all-time high of $778.2 billion. Outbound shipments in the previous month were up 9.09% from the year earlier. “It is a good signal if India’s exports have increased (in May),” he said.
The ministry is working on setting specific export targets for various sectors, with promotion councils and embassies abroad.
Global Agreements
“India’s growth journey is on a roll when international trade is falling,” Goyal said. The minister said India’s import dependence will reduce as the oil economy gets replaced with electric vehicles.
“The focus is now on plantation boards such as rubber, tea, spices and coffee, and how to increase their production, value addition and improve quality,” he said.
On India’s proposed free trade agreement (FTA) with the European Union, the minister said, “We are confident we will make fast progress.” Commerce and industry ministry officials were in Brussels during June 24-28 for the eighth round of negotiations on the accord.
The minister also exuded confidence over progress on FTA talks with the UK, adding that he has also held discussions with the shadow trade and labour ministers of that country. General elections in the UK are set to be held on July 4, with the Labour party widely expected to defeat the ruling Conservatives.
The minister said talks are ongoing with the European Union and Group of Seven (G7) countries so their ban on indirect imports of Russian diamonds does not impact India’s exports.
EU has delayed the start of the mandatory full-traceability scheme for imports of rough and polished diamonds to the bloc till March 1, 2025.
India is home to almost 90% of the world’s diamond cutting and polishing business. G7 countries – the United States, United Kingdom, France, Germany, Italy, Japan and Canada – are major markets for India’s diamond exporters.
