According to Ashwani Kumar, the newly elected president of the main exporters association FIEO, the country's merchandise exports are projected to surpass USD 450 billion by the end of current fiscal, despite geopolitical obstacles such as the Red Sea situation.
Assuring the availability of marine insurance and rationally increasing freight prices are urgent needs to solve the issues of the Red Sea catastrophe, he said.
In order to increase the country's exports, especially those of micro, small, and medium-sized enterprises (MSMEs), Kumar suggested providing them with low-interest loans and marketing assistance. He also mentioned that signing free trade agreements with countries like the United Kingdom and Oman soon would be beneficial.
Regarding the role that MSMEs will play, I will concentrate on resolving their concerns. In order to reach the goal of exporting goods worth USD 1 trillion by 2030, they will be important. Even though they support the economy, they are having trouble getting the credit they need. Kumar pleaded with banks to step forward and provide assistance to these units.
The head of the Federation of Indian Export Organizations (FIEO) also mentioned that the group is trying to find additional export prospects in places like Africa and Latin America.
"Even though there are obstacles, I am confident that our exports will exceed USD 450 billion this fiscal," he continued.
Despite setbacks, he added, exports increased by 12% in February to $41.40 billion. With a total of 395 billion USD, exports were recorded in the fiscal year 2023–24.
In spite of the Red Sea crisis, the developed world's tight monetary policy, and declining commodity prices, this gain was significant. The exporting community has been enduring these challenges since the Russia-Ukraine war, he added, so this is a reflection of their perseverance.
Product categories such as engineering, electronics, organic and inorganic chemicals, pharmaceuticals, and petroleum products led the increase in item exports in February.