New Delhi, May 17 (KNN) The Federation of Indian Export Organisations (FIEO) has projected a 14 per cent increase in India’s merchandise exports for the fiscal year 2024-25, estimating a figure between USD 500-510 billion.
This growth is expected to be driven by technology-driven sectors such as machinery, electrical and electronic goods, automobiles, pharmaceuticals, and biotechnology, which have received a boost from the government’s production-linked incentive schemes.
FIEO President Ashwini Kumar expressed optimism about the export prospects, attributing the anticipated growth to India’s traditional markets like the US and Europe, as well as the utilisation of free trade agreements with Australia, the UAE, and EFTA.
In addition to merchandise exports, the services sector is projected to contribute USD 390-400 billion in exports during the current fiscal year, with management consultancy and medical tourism poised for significant growth.
“The export prospects are better for FY25…We are looking at merchandise exports between USD 500-510 billion in 2024-25. In services, we expect exports to be around USD 390-400 billion for the current fiscal,” Kumar stated.
The apex exporters’ body has also raised concerns about the potential dumping of Chinese goods in the Indian market, following the US’s imposition of high duties on products like electric vehicles, batteries, and high-end technology items.
FIEO President Ashwini Kumar acknowledged the possibility of dumping, citing China’s overcapacity and the potential closure of one of its large markets.
“Dumping isn’t ruled out because China is sitting on overcapacity and one of its large markets may close its doors to it,” he stated.
To promote e-commerce exports, FIEO has advocated for social media marketing and exploring the potential of platforms like Facebook and Instagram.
However, the organisation has also highlighted concerns regarding labour-intensive export sectors like knitted and woven garments, made-ups, footwear, and gems and jewellery, where India has lost market share to competitors.
In response to the demand for skilled labour, exporters have sought visas for Chinese technicians and engineers required for setting up factories or machinery in India.
This move has been justified by the higher costs associated with workers from Taiwan and the perceived lack of expertise among workers from Vietnam.
(KNN Bureau)
