Overall exports surpassing FY23 figures of US$ 776.40 billion to US$ 776.68 billion: FIEO

Responding to overall export figures for the FY 2023-24, which surpassed the last FY 2022-23 figures of US$ 776.40 bn to US$ 776.68 bn, goes to show not only the firm resolve of our resilient, gritty and vibrant exports sector of the economy but also of the overall exporting community, said Mr Ashwani Kumar, President, FIEO. Good exports was the highest during any month of FY 2023-24 in March 2024 touching US$ 41.68 bn while imports were at US$ 57.28 bn, showing a merchandise trade gap of US$ 15.6 bn. Kumar added that such an impressive increase in overall exports growth despite the geopolitical tensions especially the Russia Ukraine war, Red Sea crisis, tight monetary stance by the developed world and falling commodity prices posing challenge, portrays the full dedication and commitment of the sector, which has continuously been braving such odds post Covid. The exporters have consistently been performing, driving the growth of exports, and also adding to the growth momentum of the economy.

Ashwani Kumar said that major growth drivers of merchandise exports during the FY 2023-24 were Electronic Goods, Drugs & Pharmaceuticals, Engineering Goods, Iron Ore, Cotton Yarn/Fabs./Made-ups, Handloom Products etc. and Ceramic Products & Glassware, which itself is a good sign as most of these sectors are labour-intensive sectors giving boost to employment creation in the country.

Kumar further reiterated that recent tensions in West Asia especially the threat for consignments routing through the Red Sea has further added to woes of the exporting community, as the freight rates along with the insurance cost have gone up unimaginably high, with the burden of various surcharge. Mr Ashwani Kumar also raised concern that much will depend on the new contracts to be signed with buyers during the new fiscal as the exporters have been absorbing the burden of increased freight cost as per the old agreement. 

FIEO President reiterated that the need of the hour is to address the Middle East geopolitical situation, Red Sea crisis challenges by ensuring availability of marine insurance and rationale increase in freight charges. The sector also needs easy & low cost of credit, marketing support, besides conclusion of some of the key FTAs with UK, Peru and Oman soon.