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With global slowdown fears rising, India expected to focus more on services exports


The government is expected to rely heavily on boosting services exports as global slowdown could take a toll on the exports of goods, especially luxury ones.


It also expects the Free Trade Agreements (FTAs) signed with Australia and UAE to aid the exports as the world stares at a slowdown, Times of India reported.


The global slowdown has pushed the government to focus on growing services exports, which it aims to reach $300 billion this year. After a 40 percent increase during the previous fiscal year, the target for goods exports is likely to be set at 10–12%.


It is anticipated that export demand will be constrained as a result of rising interest rates in the US and other developed nations as a result of high inflation. This is particularly true given last year's rapid expansion, which saw the value of shipments surge to $418 billion.


The current situation between Russia and Ukraine is also having an impact. The World Trade Organization (WTO) has also cut its year-end predictions.


Before making an announcement, the commerce department, which has been working toward the goal, will wait to see first quarter results.


When exports grew by slightly more than 15% in May, there were indications of a slowdown.


According to government sources, the emphasis is on boosting services exports, which are still strong, particularly with sectors like travel and tourism looking strong after restrictions posed by Covid were eliminated in most of the world.


Despite a spike in wheat exports and some other agricultural exports in March and April, the limitations will have some effect. They are unlikely to make a significant difference, though, given the modest share of India's exports.


The FTA with Australia is anticipated to go into effect later this year after receiving approval from the Australian Parliament, whereas the deal with the UAE is already in force.


Read more at: https://economictimes.indiatimes.com/news/economy/foreign-trade/with-global-slowdown-fears-rising-india-expected-to-focus-more-on-services-exports/articleshow/92646406.cms

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