Federation of India Export Organizations (FIEO) noted that the fiscal year 2021-22 is expected to end with merchandise exports of US$ 400 Billion. As this would be on a high base for FY' 2022-23 unlike last year, export growth of 30-35% on such numbers would be difficult particularly as additional exports may require augmenting the capacity as well. Moreover, the spectacular increase in global trade by about 22%, buoyed by high prices of commodities, as witnessed in 2021 will not be there to provide the tail wind to our exports.
FIEO noted that much will depend on whether Covid-19 is contained through massive vaccination across the globe and be able to create required capacity. FIEO Chief noted that looking into the emergence of the new variants and supply side challenges at this point of time, the Federation would like to be a little conservative and will aim for an export of US$ 460-475 Billion during the next fiscal.
FIEO President further added that global consumption is likely to go up substantially in 2022, albeit the pandemic is controlled. The good thing with domestic exports has been a very balanced growth across sectors both in traditional exports as well as sunrise sectors of exports during the current fiscal.
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