India may still remain poor even after becoming 3rd largest economy: Ex-RBI chief D Subbarao – Times of India

India may still remain poor even after becoming 3rd largest economy: Ex-RBI chief D Subbarao - Times of India

New Delhi: Merchandise of India Exports USD 41.69 billion in March, with a slight decline, and a 3.11% decline to USD 437.06 billion over the previous fiscal, mainly due to the ongoing geopolitical crisis, and slowdown in global trade.
Imports also declined in March as well as throughout 2023-24. Trade deficitor the difference between Imports And exports, down 17.74% to USD 15.6 billion in March and 9.33% to USD 240.17 billion in FY24.
Gold imports, which rose 30 percent to US$ 45.54 billion during the fiscal year, were one of the main contributors to the trade deficit.
Responding to a question on the escalation of the crisis in the Middle East, Commerce Secretary Sunil Barthwal, who was briefing on the trade data, said the ministry was monitoring the situation and would take “appropriate action”. will
However, he did not clarify this because of the Model Code of Conduct ahead of the Lok Sabha elections.
The secretary, however, added that diversifying India’s exports helps mitigate the impact of regional conflicts.
The secretary said that overall exports (trade goods + services) are estimated to cross the previous year’s record high.
It is estimated to reach USD 776.68 billion in 2023-24 as against USD 776.40 billion in 2022-23.
Bartholomew said the highest monthly merchandise exports during 2023-24 in March was US$ 41.68 billion.
Major drivers of merchandise export growth in 2023-24 include electronic goods, drugs and pharmaceuticals, engineering goods, iron ore, cotton yarns/fabs/made-ups, handloom products and ceramic products and glassware.
Exports of electronic goods increased by 23.64% from US$ 23.55 billion in 2022-23 to US$ 29.12 billion in 2023-24.
Exports of drugs and pharmaceuticals increased by 9.67% to USD 27.85 billion during the fiscal year from USD 25.39 billion in 2022-23.
Exports of engineering goods are projected to grow by 2.13 percent to reach US$ 109.32 billion in 2023-24, the data shows.
gave Ministry of Commerce It also said that the overall trade deficit is projected to improve significantly by 35.77% from US$ 121.62 billion in 2022-23 to US$ 78.12 billion in 2023-24.
President of the Federation of Indian Export Organizations (FIEO) Ashwini Kumar said that the recent tensions in West Asia, especially the risk of shipping goods through the Red Sea, have added to exporters’ worries, as freight rates, along with insurance costs, are unimaginable. The limit has increased, the burden of various surcharges
He also expressed concern that much will depend on new contracts being signed with buyers during the new financial year as exporters are bearing the burden of increased freight costs as per the old contract.
The FIEO President reiterated that addressing the challenges of Middle East geopolitical situation, Red Sea crisis, ensuring availability of marine insurance and reasonable increase in freight charges is the need of the hour.
Meanwhile, on the India-UK FTA, the commerce ministry said the 14th round of negotiations was completed in January.
Recently, a UK team visited India (March 5-7) to discuss pending issues.
The teams have made good progress, he said, adding that most of the difficult issues are on the way to resolution.
A few key priority issues are being addressed for a balanced outcome to seal the deal.
A team of negotiators from India is in the UK for talks, the ministry said.
On the India-EU FTA, the ministry said the seventh round of negotiations was completed in February 2024.
He added that both sides have agreed to meet between sessions on several chapters in practice before the start of the 8th round in Brussels in May/June.
According to Commerce Ministry data, the estimated value of services exports for March 2024 is USD 28.54 billion, up from USD 30.44 billion in the month a year ago.
Services imports are estimated at USD 15.84 billion in March, compared to USD 16.96 billion in March 2023.
The trade surplus in services for FY24 is estimated at USD 162.05 billion, as against USD 143.28 billion in the previous fiscal.
FIEO Director General and CEO Ajay Sahay said several shipments were delayed due to the Red Sea issue and finished in April.
“Hence, the March export data should also be seen in the same context,” he said.

Business news,Trade deficit,Imports,FIEO,Exports,EU FTA,Ministry of Commerce

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