Forward-looking strategic trade roadmap to create more vibrant export sector: Eco Survey

New Delhi: The evolving global trade dynamics, marked by gradual shifts towards greater protectionism, require assessing the situation and developing a forward-looking strategic trade roadmap, the Economic Survey 2024-25, presented in the Parliament on Friday ahead of the Union Budget 2025-26, said.

India’s external sector continued to display resilience amid global headwinds and total exports (merchandise and services) registered a steady growth in the first nine months of FY25, reaching $602.6 billion (6 per cent).

Growth in services and goods exports, excluding petroleum and gems and jewellery, was 10.4 per cent. Total imports during the same period reached $682.2 billion, registering a growth of 6.9 per cent on the back of steady domestic demand.

By adapting to global trends and leveraging its strengths, India can accelerate its growth and enhance its presence in global trade. To strengthen its competitiveness and further integrate into global supply chains, the country can focus on reducing trade-related costs and enhancing export facilitation to create a more vibrant export sector, according to the Survey tabled by Finance Minister Nirmala Sitharaman.

This proactive approach will help India continue to thrive in an ever-changing global market.

On the capital front, foreign portfolio investments (FPIs) have shown a mixed trend in FY25 so far.

Uncertainty in the global markets and profit-taking by foreign portfolio investors led to capital outflows. However, strong macroeconomic fundamentals, a favourable business environment, and high economic growth have kept FPI flows positive overall.

“Gross foreign direct investment (FDI) inflows have shown signs of revival in the first eight months of FY25, though net FDI inflows declined relative to April-November 2023 due to a rise in repatriation/disinvestment,” the Survey noted.

India’s foreign exchange reserves stood at $640.3 billion as of the end of December 2024, sufficient to cover approximately 90 per cent of the country’s external debt of $711.8 billion as of September 2024, reflecting a strong buffer against external vulnerabilities, according to the Survey.

–IANS