Despite odds, FIEO targets $475-bn exports in FY23

Relying on Global Consumption

• The spectacular increase in global trade buoyed by high prices of commodities, as witnessed in 2021 will not be there to provide the tailwind to India's exports

• Emergence of new Covid variants, the existing supply side challenges may hinder exports

• Exports growth will depend on whether the world would be able to contain Covid-19 through massive vaccination

• Exports to NAFTA, Europe, the Middle East, Oceania will continue to boom

New Delhi: The Federation of Indian Export Organisations (FIEO) on Thursday said taking a conservative approach, it will aim for $460-475 billion exports in the next fiscal year due to emergence of new variants of coronavirus and the existing supply side challenges.

During 2021-22, exports are expected to reach $400 billion, FIEO President A Sakthivel said. He said the spectacular increase in global trade by about 22 per cent, buoyed by high prices of commodities, as witnessed in 2021 will not be there to provide the tailwind to India's exports. Much will also depend on whether the world would be able to contain Covid-19 through massive vaccination across the globe and be able to create the required vaccine manufacturing capacity.

"Looking into the emergence of the new variants and supply side challenges at this point of time, we would like to be a little conservative and will aim for an export of $460-475 billion during the next fiscal," he added. He also expressed hope that the global consumption would go up substantially in 2022, albeit the pandemic is controlled.

"The good thing with our exports has been a very balanced growth across sectors both in traditional exports as well as sunrise sectors of exports during the current fiscal. "We are hopeful that the same trend will continue particularly as the order booking position of all exporters is extremely encouraging and China plus one policy of global companies is definitely helping our exports," he added. Next year also, FIEO feels that exports growth will be widespread and exports to NAFTA, Europe, the Middle East, Oceania will continue to boom particularly as "we should look" at concluding free trade agreements with the UK and UAE soon and similar pacts with Canada and Australia in 2022.

"Moreover, with increase in the prices of inputs, skyrocketing freight and delays in shipments and payments have resulted in the need for additional credit. "While container shortage has eased due to peak season supplies for Christmas, New Year and Chinese New Year getting over, the same is likely to compound once countries open up after the holiday seasons particularly if the new variant is not brought under control," Sakthivel said.