In established countries, low inflation and rising demand will provide exports a bright future in 2024

 In established countries, low inflation and rising demand will provide exports a bright future in 2024

In established countries, low inflation and rising demand will provide exports a bright future in 2024

An increase in global demand, a slowdown in inflation, and low interest rates all add to confidence in 2024, when India's exports are predicted to reach US$900 billion.

A glimmer of optimism for the nation's exports will come from reduced inflation in rich nations, easing interest rates, a steady rise in worldwide demand, and other reasons. Total outbound shipments are predicted to surpass US$ 900 billion in 2024.

Foreign trade analysts predict that the services sector will grow faster than the products sector, and that the nation's total export shipments might surpass US$900 billion in 2024 as opposed to a projected US$764 billion in 2023.

The nation is kept healthy by a stable rupee compared to the US currency, an emphasis on expanding into new markets like Latin America and Africa, innovative products like smartphones and fresh fruit, an emphasis on encouraging e-commerce exports, and free trade agreements with Australia and the UAE. will support the registration of development. in exports the next year.

Despite a number of obstacles that have affected exports this year, such as geopolitical unrest and China's sluggish post-pandemic recovery, Indian exporters of products and services have been able to take advantage of possibilities in both established and emerging nations. Export growth was negative in the first part of the current year, peaking at over 19% in June before declining to 2.83 percent in November 2023. According to an official, product exports increased by 6.21% in October. This trend is expected to continue in 2024, with an increase in both goods and services exported.

Exports of machinery, electrical and electronic equipment, cars and auto parts, high-tech goods, medicines, and medical and diagnostic equipment are probably going to increase in 2024. To encourage the export of goods and services, experts advised concentrating on novel items and novel markets.

A combination of national and international issues will impact India's trade performance in 2024 against the background of uncertainty in the global economy. However, given that India accounts for barely 2% of global trade, efforts to diversify the service sector and increase regional competitiveness in labor-intensive industries might surprise us with strong export results, according to the co-founder of the think tank Global Trade Research Initiative (GTRI). -stated Ajay, the founder. stated Srivastava.

He noted that India's trade projection for 2023 follows the worldwide trend, with a 5.3% fall in goods exports, in keeping with the UNCTAD (United Nations Conference on Trade and Development) report that indicates a 5% reduction globally. Even though the rupee's value decreased relative to the US dollar, which typically increases export competitiveness, the decrease was noteworthy.

The decrease was especially noticeable in labor-intensive industries like leather and textiles. The fact that India's total commerce in 2023 was unchanged from the previous year suggests that strategic measures would be required to ensure a rebound in 2024, according to Srivastava. Director general of the Federation of Indian Export Organizations (FIEO), Ajay Sahay, said that interest rates would probably decline as a result of the worldwide decline in inflation and the majority of central banks' halt in key rates, which will increase demand.

"We anticipate receiving a significant number of new orders in 2024, which will increase our exports. In 2024, Sahay said, "we should concentrate on exporting goods and services valued at more than US$900 billion." He did, however, note that the Red Sea problem may have an immediate effect on exports because of a shortage of containers and rising freight costs. "We expect freight traffic to many destinations to stay at high levels over the coming months, having nearly doubled."

By mid-March, a better trend for 2024 will be evident, according to Sahay. The founder and managing trustee of the Bharatiya Yuva Shakti Trust (BYST), which supports micro and rural entrepreneurs nationwide, Lakshmi Venkatraman Venkatesan, said that the government's goal is to raise the proportion of MSMEs in exports to a minimum of 60%. This may be achieved by using the potential in industries like processed foods, leather products, ready-made clothing, and engineering items for export to BRICS and G20 nations during the course of the next five years.

The chairman of Hi-Tech Gears and trade expert Deep Kapuria said that the rise in Indian exports has been facilitated by newly developing industries like electronics and mobile phones. The more difficult task, however, will be keeping up this growing rate. Considering that the US wants to export $2 trillion worth of products and services by 2030, this is even more crucial. In the future, India must work even more to put more items under the Quality Control Order (QCO), since this would make our work easier. Global value chains (GVCs) will include MSMEs, which is a crucial strategy for boosting exports, according to Kapuria. Exporter and President of Technocraft Industries, Sharad Kumar Saraf, is headquartered in Mumbai. He said that the company's order books are full and that demand is now steadily rising from the United States and Europe.

In order to increase India's exports, the government has announced a new foreign trade policy, promoted export-oriented districts, increased funding for the Rupee Export Credit Interest Equalization Scheme, provided financial support for the Trade Infrastructure Scheme for Exports (TIES) and Market Access Initiative (MAI) Schemes, and increased the presence of Indian missions overseas.