The country’s exports have largely remained stable till February despite pressure due to rising freight costs and challenges around the Strait of Hormuz closure and are expected to hold in March, the minister said.
“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 while replying to questions during the Question Hour. Goods exports fell 0.81% on-year to $36.61 billion in February.
Also read: No severe shocks despite crises, says Sitharaman as she highlights India’s economic strengthThere was some weakness in the first week of March “but it turned positive in the second week and by March end, 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.
“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,” Goyal said.
On the current account deficit, he said services surplus is large and will be $17-18 billion.Also read: Trade deficit nearly 2x in Feb; exports face battlefield ahead
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 fundamentals and economic situation are strong. Entire world is keen to increase trade relations with India,” he said, adding that over the last three-and-a-half years, 38 developed nations have opened up for India. “As and when every FTA becomes operational, India’s fishermen, farmers, MSMEs, new exporters, new products and services will have huge opportunities,” Goyal said, adding that efforts are on to make the trade deal with the UK operational next month.