Modi’s government has set an export target of $2 trillion by 2030

The Modi government is expected to set an ambitious export target of $2 trillion by 2030 in its new foreign trade policy, expected to be released this month.

Senior Commerce Department officials working on the fine print of the directive said: “We can imagine $1 trillion in exports of goods and $1 trillion in services. So total exports of $2 trillion by 2030. Within that framework we are developing an FTP and we expect it to be released by the end of this month.”

The focus of the new policy will be on promoting trade through free trade agreements (FTAs) and marketing via Indian missions.

The policy will also involve other ministries and countries. Also, it will focus on import substitution and import diversification.

Trade analysts said the $2 trillion target by 2030 is achievable, although there are near-term headwinds and the situation isn’t very supportive.

Apex exporters organization Fieo expects exports of US$770-780 billion this fiscal year, which will be more than the US$672 billion exports recorded in 2021-22, showing high growth in 15-16 percent.

The figures gain significance amid global headwinds compounded by geopolitical uncertainties, said A. Sakthivel, Fieo President.

Rising inflation, falling demand and high interest rates have also hit exports, he said.

“We should aim for $900-$950 billion in exports in 2023-24 despite a modest increase in global trade. Better market access through free trade agreements and comprehensive economic cooperation agreements will help exports.”

“Services will continue to be the driver. Besides IT, travel and hospitality, health and medical tourism, auditing and accounting sector, financial and educational services, films and animation will drive the export,” he said.

ORDER 2030

■ Focus on promotion through free trade agreements, involvement of central ministries and federal states

■ Policy will also emphasize import substitution and import diversification

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