Export Promotion Underway

While India has underperformed compared to China’s markets in the last 3 months, the tide is changing. To boost trade globally, India has entered FTAs with UAE, Australia, UK, Canada, EU, Israel, and GCC. Pharmaceuticals, electric goods, engineering goods, and chemicals are some sectors that have driven maximum export growth in FY22. Additionally, the RBI has proposed the creation of a regulatory body that will concentrate on the operations of the fintech sector, to protect the system from risks.

EXPORT

India's exports in FY23 to reach about $770 billion: Minister Anupriya Patel

India's merchandise and services exports combined in the current financial year ending March will be close to USD 760-770 billion, Union Minister for State for Commerce and Industry Anupriya Patel said on Thursday. The country's merchandise and services exports stood at USD 672 billion in the last fiscal.

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BILATERAL TRADE

India, US to ink MoU on semiconductors, launch dialogue on export controls

A memorandum of understanding (MoU) to be signed by India and the US on cooperation in semiconductors will help the Indian side play a greater role in diversified supply chains and identify opportunities for joint ventures or technology partnerships, US commerce secretary Gina Raimondo said on Thursday.

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EXPORT

India's exports growth momentum will have to come from its states

Exports have demonstrated praiseworthy performance in FY22 and reached an all-time highest level. One major factor in the achievement of these targets is a result of the culmination of the government's efforts. As a result, in FY22 the merchandise exports touched $422.0 billion to exceed the target of $400 billion. Sectors like pharmaceuticals, drugs, electronic goods, engineering goods, and organic and inorganic chemicals, gems and jewellery have displayed substantial progress in FY22 exports.

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ECONOMY

India’s underperformance nearing an end

India has considerably underperformed some of the emerging markets like China in the last 3-4 months. Hence, India’s premium to other emerging markets has shrunk, albeit it is still high. There may be some more underperformance in the near term after which India will again start to look attractive. As our per-capita GDP moves closer to around USD 4000 by FY28 and USD 5500 by FY32. This, along with deeper penetration, will throw up opportunities across the consumer space.

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FINTECH

Fintech companies need a self-regulatory body: RBI deputy governor MK Jain

Reserve Bank of India (RBI) has said that the financial technology, or fintech, sector should organise itself under a self-regulatory organisation that can monitor the conduct of member fintech entities. Addressing an international research conference on fintechs on Friday, co-organised by IIM-Ahmedabad, RBI deputy governor MK Jain said that a self-regulatory approach could also help protect the customer's interest and promote a high level of governance standard in fintech entities.

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