Despite coronavirus pandemic, India is moving closer to last year’s level of trade, with export of goods facing 8-10% decline by the end of current fiscal, as compared to the period a year ago, commerce and industry minister Piyush Goyal said on Tuesday.
“Other than tourism and hospitality, we will close the year with 90% of our services exported worldwide as compared to what we did in the previous year. We will be almost getting back to the level of trade in goods that we did last year, possibly a 8-10% shortage. That’s all,” Goyal said, adding that the two sectors were severely affected by the outbreak of the pandemic.
According to official data, during the first 11 months of the current fiscal, merchandise exports contracted 12% on-year at $256.18 billion. Total exports in the financial year 2019-20 was $314 billion.
“Given the ramifications of the pandemic in India and across the world, the fact that large parts of the world today is still under lockdown, given that we had almost a three-month lockdown...shipping freight is high, containers are in short supply. Given all of these, the fact that we would be at 90-92% level, both in goods and services, that India as a nation is a trusted partner, and is ready to pick up the gauntlet in the most adverse situation,” he said at CII's India Services Conclave.
The Indian economy is driven by the services sector, which accounts for 54.3% of India’s gross value added (GVA), and employs approximately a third of the country’s population. The services sector attracts the largest amount of foreign direct investment.
He further said that against a $200 billion dollar digital ecosystem, India has a $1 trillion dollar ambition. “The way we are reorienting our competitive advantages in the digital space, we can achieve a $800 billion to $1 trillion economy very quickly. Digital services will contribute to ease of living, will help ease of consumer engagement and will help secure the digital infrastructure required for our international engagement,” he said.
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