India hopes to exceed $750 billion export target in FY23, says 18 nations already on track for rupee trade

Pointing to India's growth rate of over 7 percent despite WTO's forecast of 1 percent, the commerce ministry is hoping for the trend to continue on the back of a good performance by the electronics sector and an export worth over Rs 67,333 crore of smartphones by the end of January 2023.

While the government hopes to exceed the $750 billion export target in the current financial year, it is still working out the export target for FY24 which it aims to keep "realistic".

Stating that the India-United States (US) MoU on semiconductors aims for a synergy between the India Semiconductor Mission and the Chips Act of the US, the commerce ministry noted that the world has realised the need for resilience and diversification of the currently narrow semiconductor value chains. As part of the one-plus strategy being adopted by nations including the US, India is also aiming for a share in the semiconductor value chain.

With the complex and long semiconductor value chain involving design, fabrication, and packaging, the commerce ministry stressed that the import of certain intermediary products related to the value chain is essential, like the need to import certain kinds of chips for the production of mobile phones.

However, the ministry added that the export controls on critical technologies aim to keep them with trusted partners and prevent their transfer to every country.

With an Indian delegation currently participating in the 2nd round of IPEF negotiations in Bali from March 13 to 19, trade negotiations with the United Kingdom are also slated for the last week of March 2023. The first G20 trade and investment working group meeting in 2023 is scheduled to take place in Mumbai from March 28 to 30.

With the India-Canada CEPA (Comprehensive Economic Partnership Agreement) negotiations in the goods and services market access currently in an advanced stage, the 7th round of talks is being planned for April 2023.

The US is also slated to send a senior government official-led Clean Energy and Environmental Technology Business Development Mission to India in 2024.