While merchandise trade saw some pressure due to rising freight costs and challenges around the Strait of Hormuz, he said exports have largely remained stable till February and are expected to hold in March and that India’s overall trade deficit remains manageable.
Also Read: India-US trade deal to be signed after new US tariff framework is finalised
“Amid the adverse situations in the world, anyone could think that ships cannot pass through the Strait of Hormuz, freight has hiked by three times, and there is no insurance. Despite that, in the month of February, trade of goods was flat and did not decline, while the growth in services is rapidly increasing,” Goyal said.
Goods exports fell 0.81% on-year to $36.61 billion in February.
“March first week there was some weakness but it turned positive in second week and by end March ,we will maintain our exports,” Goyal said.
“Trade deficit has increased but our services (exports) also are increasing. Services exports have grown in the last 3-4 years,” he said, explaining that taken together, merchandise and services trade deficit is 1-1.25% of the GDP every year and has become surplus four years ago.“In such circumstances, instead of seeing one indicator, we should look at the comprehensive exports and in which goods and services we have a competitive advantage. Our focus is on that,” he said.
On the current account deficit, he said services surplus is large and will be $17-18 billion.
Also Read: Biz chamber seeks RBI relief for exporters hit by West Asia disruptions
The minister also pointed to rising remittances, record FDI inflows, and upcoming free trade agreements as key drivers supporting India’s robust economic fundamentals and future export growth.
“In overall context, India’s fundaments and economic situation is strong. Entire world is keen to increase trade relations with India,” he said, adding that In 3-3.5 years, 38 developed nations have opened up for india.
Earlier governments, he said, did deals with competing countries.
“How will A country with per capita income of $90,000 or $2 lakh, compete with us? As and when every FTA becomes operational, India’s fishermen, farmers, MSMEe, new exporters, new products and services will open up huge opportunities,” he said, adding that efforts are on to make the trade deal with the UK operational next month.