Informist, Wednesday, Sep 18, 2024

--Minister Goyal: Hope overall exports top $825 bln in FY25

NEW DELHI – Commerce Minister Piyush Goyal today said he is hopeful India's overall exports, goods and services, rise above $825 bln in the current financial year, from around $778 bln in 2023-24 (Apr-Mar). This will help the country meet the goal of taking overall exports to $2 trln by 2030, which is achievable, Goyal said.

Goyal also said that while taking goods exports to $1 trln by 2030 is challenging because of the global situation, this goal is also achievable. Services exports, on the other hand, have great potential to grow in double digits.

India's external sector is in a comfortable position and the country doesn't need to worry about foreign exchange risk for "many years to come", Goyal said.

"Foreign exchange reserves at $689 bln means whatever we need to import, whatever the level of trade deficit, given stable remittances and investment, I don't think India has to worry about foreign exchange risk anymore for years to come," he said.

Goyal said that investors don't worry about the rupee exchange rate risk anymore "because they are confident it will be stable". The minister said India can double the size of its economy by 2030, and can add "a percent or so every year through rupee appreciation also".

"It is my dream since 2000 that India should move to the era of rupee appreciation." Goyal said that while the rupee had appreciated between September 2013 to May 2014, from 68 rupees a dollar to around 55 rupees a dollar, it was done artificially by the then finance minister P. Chidambaram.

"Chidambaram had borrowed heavily through FCNRB (Foreign Currency Non-Resident Bank) accounts, at almost twice the then prevailing interest rates in dollar terms, and borrowed $35 bln to shore up reserves artificially," Goyal said.

The Prime Minister Narendra Modi-led government has not borrowed indiscriminately in foreign exchange, he said. "We believe foreign exchange borrowings are a long-term threat to a country's sovereignty and decisionmaking."

The current low foreign exchange borrowings figure of India gives the government to imagine GDP growth of 7-8% in real terms, and possibly rupee appreciation of 1% or so, Goyal said. End

US$1 = 83.75 rupees

Reported by Shubham Rana

Edited by Aditya Sakorkar

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