New Delhi: Indian exporters have expressed optimism that the country’s merchandise exports will cross USD 500 billion in the current fiscal year, driven by a surge in demand from global markets.
According to a report by the Economic Times, exporters believe that the country’s merchandise exports will receive a boost from the government’s production-linked incentive (PLI) scheme, which offers financial incentives to companies that produce goods locally and export them.
The report cites data from the Ministry of Commerce and Industry, which shows that the country’s merchandise exports rose by 85.77% year-on-year to USD 34.45 billion in August 2021. This follows a 47.91% increase in July 2021, indicating a sustained recovery in the sector.
Exporters are reportedly bullish about the growth prospects of key sectors such as engineering goods, pharmaceuticals, and textiles, which have seen robust demand from global markets in recent months. They are also optimistic about the prospects for exports of agriculture and allied products, which have been identified as a priority sector by the government.
However, exporters have cautioned that rising freight rates and shipping container shortages continue to pose challenges for the sector. The report notes that the government has taken several measures to address these issues, including providing incentives to shipping lines to operate in India.
Overall, the outlook for India’s merchandise exports appears positive, with exporters expressing confidence that the country will achieve its target of crossing USD 500 billion in exports in the current fiscal year.
