Source- This post on Target to achieve $1 trillion goods exports by 2030 has been created based on the article “Target is to achieve $1 trillion goods exports by 2030: Trade Ministry” published in “The Indain Express” on 24 April 2024.
Why in the news?
The Ministry of commerce has set a target to achieve $1 trillion goods exports by 2030.
Status of Indian Exports
1. Good and Services Export Data- In FY 21-22, India achieved notable milestones in both goods and services exports. The good/merchandise exports reaching US$ 422 billion and the service sector exports reached US$ 254 billion.
2. Increased contribution of Indian export sector to incremental GDP- The Indian export sector has been contributing significantly to the growth of Indian economy. The Indian export sector accounted for 50% of the incremental GDP in 2021-22.
Target set for Indian export Sector
Target for Indian Export sector by 2047- The commerce ministry has set the target for Indian export sector to contribute 25% of India’s GDP by 2047. The target for India’s GDP is to grow to 30 trillion dollar by 2047.
Challenges to Indian Exports
1. Rising cost of raw materials and Suppressed Demands- There has been rise in the cost of raw materials and there has been subduction of demand in certain key export markets amidst the global uncertainties and turmoil like the Israel-Gaza war, Russia-Ukraine war.
2. Stricter Environmental laws hindering Indian exports- The stricter environmental laws like EU’s Carbon border adjustment mechanism (CBAM), which penalize products with high carbon footprints, will dampen Indian exports. CABM can raise the costs of Indian exports by 20 to 35 per cent.
Read More- Carbon Border Adjustment Mechanism (CBAM)
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