The Federation of Indian Export Organizations (FIEO) said on Thursday that taking a conservative approach, it will target $ 460 billion to $ 475 billion in exports in the next fiscal year due to the emergence of new variants of the coronavirus and existing challenges on the supply side.
In 2021-2022, exports are expected to reach $ 400 billion, said EIFE President A Sakthivel.
He said the dramatic increase in world trade of around 22%, supported by high commodity prices, as in 2021, will not be there to provide the tailwind for Indian exports.
Much will also depend on the world’s ability to contain COVID-19 through mass vaccination across the globe and create the required vaccine manufacturing capacity.
âRegarding the emergence of the new variants and the challenges on the supply side at this point, we would like to be a little conservative and aim for an export of $ 460 billion to $ 475 billion in the next fiscal year,â a- he added.
He also expressed hope that global consumption would increase significantly in 2022, despite the pandemic being brought under control.
âThe good thing with our exports has been very balanced growth across sectors both in traditional exports as well as in booming export sectors during the current fiscal year.
“We hope that the same trend will continue, especially since the order position of all exporters is extremely encouraging and the policy of China plus one of the global companies is definitely helping our exports,” he added. .
Also next year, the EIFE estimates that export growth will be generalized and that exports to NAFTA, Europe, the Middle East and Oceania will continue to grow, especially since “we should consider “to soon conclude free trade agreements with the United Kingdom and the United Arab Emirates and similar pacts with Canada and Australia in 2022.
âIn addition, with rising input prices, skyrocketing freight and delays in shipments and payments have resulted in the need for additional credit.
Although the container shortage has eased due to peak season supply for Christmas, New Year and Chinese New Year, the same is likely to worsen once countries open after the holidays, especially if the new variant is not mastered, âSakthivel mentioned.