India is poised to achieve a remarkable milestone in its economic journey, with exports of goods and services projected to surpass $800 billion in the current fiscal year, said commerce minister Piyush Goyal on Friday.
This anticipated figure not only marks a significant increase from the previous year's total of $778 billion but also reflects the resilience of India's export sector amid global economic uncertainties.
Exports to hit record $800 billion "My estimate is that we will cross $800 billion in exports, another record given the world situation," Goyal stated.
He further noted that India’s diverse export basket and the rapid growth of services exports have contributed to this resilience. However, he acknowledged challenges faced by developing and least-developed countries due to forex crises, the Covid pandemic, and disruptions in shipping caused by the Red Sea crisis.
Despite these issues, India has seen significant growth in exports of goods and services, even in sectors with government-imposed restrictions. The minister also highlighted that rising imports reflect robust economic activity, driven by demand for machinery, equipment, and intermediate goods.
On relations with the United States, Goyal expressed optimism about engaging with the new administration.
"We are looking forward to a deep and substantive engagement with the new US administration...we are looking forward to working with (Donald) Trump administration again," he said, underlining the importance of bilateral cooperation in trade and economic growth.
Return of Indian startups from abroadGoyal further assured that the government is dedicated to simplifying the process for start-ups seeking to relocate their domicile back to India from abroad.
He stated that the ministry would consult with the National Start-up Advisory Council and gather feedback, "if any steps are required to make their journey back easier. We are open to ideas".
"It is a welcome sign and also very very satisfying that more and more start-ups come back home and register in India, list in India, and grow in India. India will be a preferred destination in the future," he said.
Initially, these start-ups registered abroad to benefit from easier access to international funding, higher valuations, and more relaxed regulations in various sectors.
However, many are now considering listing in India after relocating.
Goyal mentioned that the Department for Promotion of Industry and Internal Trade (DPIIT) has signed 50 MoUs with corporate entities, sharing their problem statements with start-ups to explore potential opportunities.
The NSAC, which was formed in 2020, advises the government on fostering a strong start-up ecosystem, focusing on innovation, economic growth, and employment generation.
No new subsidies for electric vehicle sectorEarlier in the day, Goyal spoke to EV stakeholders and asserted that India's electric mobility sector is "absolutely ready to fly" and no longer needs additional subsidies or incentives.
He reviewed the progress in EV adoption, technological advancements, and challenges related to charging infrastructure and battery swapping.
He further reaffirmed the government's commitment to tackling these issues and promoting the rapid adoption of electric vehicles (EVs) in India.
"After the interaction I can say that the electric mobility today is absolutely ready to fly. They do not need newer incentives or subsidies. The existing subsidies are available for some more time and will help them give that appropriate kick-start to the EV ecosystem. It's a good economic case to move from ICE engine to electric engine," Goyal said.
The Minister highlighted key policy enablers, including the reduction of GST on EVs from 12 per cent to 5 per cent and on chargers/charging stations from 18 per cent to 5 per cent. He also urged commercial establishments and offices to set up EV charging equipment and called on industry bodies to raise awareness about the environmental benefits of EVs.
Safety standards were a major discussion point during the meeting. The Bureau of Indian Standards (BIS) has already notified standards for three- and four-wheelers, with drafts for two-wheelers under review. Goyal urged stakeholders to submit their feedback promptly to finalise these standards.
Regarding battery swapping, a system allowing EV users to exchange discharged batteries for charged ones, the Minister emphasised consumer choice. “It’s up to the consumer. Smart consumers will make smart choices,” he remarked.
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