To Achieve 2030 target, Exports Must Grow At 12.5% CAGR

As current growth rates fall short of the required pace, Federation of Indian Export Organisations (FIEO) Director General and CEO Dr. Ajay Sahai has stated that Indian exports must grow at 12.5 per cent CAGR to achieve the USD 2 trillion export target by 2030.

During a meeting with FIEO members in Kolkata last week, attended by Directorate General of Foreign Trade (DGFT) official Mr. Samtosh Kumar Sarangi, Dr. Sahai presented an analysis of India’s export performance. He noted that exports grew at a CAGR of 8.2 per cent from fiscal year 2018 to 2024, which is not enough to meet the 2030 goal.

In FY’24, total exports recorded a slight gain, reaching USD 778 billion compared to the previous year’s USD 776 billion. FIEO projects that this year’s exports of goods and services might hover between USD 890-910 billion.

Mr. S K Sarangi stated, ‘The export target for the current fiscal year is yet to be finalised’ after conversing with Kolkata’s exporters. Additionally, there’s a pending proposal for extending the Interest Equalization Scheme, currently set to expire in June. This scheme offers pre and post-shipment Rupee export credits with two per cent interest for certain exporters and three per cent for MSME manufacturers.

Dr. Ajay Sahai voiced the industry’s demand for restoring original interest equalization rates to three and five per cent, citing past reductions tied to RBI’s adjustments. Commenting on Free Trade Agreements, Sahai said 19 FTAs had been signed while talks were in an advanced stage with Oman, Russia, Armenia, Kazakhstan and the European Union.

Questions about extending the Remission of Duties and Taxes on Export Products (RoDTEP) to Special Economic Zones (SEZs) were met with optimism, as Mr. Sarangi noted the extension is contingent on integrating SEZs into the Indian Customs Electronic Gateway (ICEGATE).

Technical issues affecting the Export Data Processing and Monitoring System (EDPMS) should be resolved by July, Mr. Sarangi assured. He also mentioned that the ‘Trade Connect’ e-platform, providing comprehensive export information, is set for a phased release within the next three months.