Directorate General of Foreign Trade
Current Growth of Exports Vis-à-Vis Target
- In April 2015, the Narendra Modi government set a mammoth target of increasing India’s exports to $900 billion by 2020
- To reach $900 billion by 2020, India will need annual export growth between 15% and 20%. Export growth has not been positive so far and may not be positive in immediate quarters. India’s merchandise export growth has been negative since September 2015.
- Lower demand for imports and weak global economy: The World Trade Organization cut its global trade growth estimate for 2015 to 2.8% from 3%. For 2016, the estimate was lowered to 3.9% from 4%.
- In 2015, petroleum product exports fell by 52%, which accounted for 18.8% of the total exports. Engineering goods, which constituted 21.9% of the total exports, saw a drop of 11%. Gems and jewelry, the third-largest export component (13% of total exports), declined 7%.
- In the next 3-plus years, if things improve, India might hit 50% of the incremental target. This translates to exports worth between $600 billion and $650 billion by 2020, a gap of $250-$300 billion vis-à-vis target.
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