Merchandise exports likely to reach $500 bn in FY25, growth of labour intensive sectors a concern: FIEO
FIEO) on Thursday stated that it expects merchandise exports to reach $500-510 billion for the year. In FY24, goods exports had fallen to $437.06 billion.
FIEO also said that while meeting the ambitious target of $2 trillion exports by 2030, requiring a CAGR of 12.7%, is challenging, it is within reach and can be achieved. Demand, it stated, is slowly improving and continues to be robust for technology driven sectors such as electronics, machinery, high and medium technology, pharmaceuticals, medical and diagnostic equipment.
Expressing concern over the growth of the labour-intensive sectors, FIEO President Ashwini Kumar said we lost the market to competitors in categories like knitted and woven garments, made-ups, footwear, gem and jewellery. “In the knitted garment sectors, for example, India added $200 million to its exports during calendar years 2019-2022, whereas, Bangladesh added $10 billion in the same period. In the footwear sector, while global imports grew at a CAGR of 5%, our exports contracted. Bangladesh exports grew by $750 million in the same period. We need to look into global demand and accordingly modify our manufacturing,” he said at a media interaction in the capital.
Kumar, Partner at Victor Forgings, Jalandhar, was unanimously elected president of FIEO on March 11, said a release.
FIEO expects exports in services to reach approximately $390-$400 billion in the current fiscal year on the back of business services such as engineering, R&D, advertising, business and management consultancy.
