Exports to rise 6% this year, will end year on positive note: Goyal

Commerce Minister Piyush Goyal said India's exports would grow 6% this year, despite the US' 50 per cent tariffs, adding FTAs with the EU and UAE were progressing to boost trade

Union Commerce Minister Piyush Goyal on Wednesday said India’s exports would grow by 6 per cent this year, eventually ending on a positive note.

 

“India’s exports would grow by around 6 per cent this year compared to the corresponding period last year. I believe we will end the year on a positive note,” Goyal said in Mumbai.

 

His remarks come amid concerns over the impact of the United States’ move to impose a 50 per cent tariff on Indian goods, including a 25 per cent duty on imports linked to Russian oil.

 

In FY25, India’s exports reached a record $824.9 billion, a 6.01 per cent increase from $778.1 billion in the previous year. Outbound shipments rose 6.7 per cent year-on-year to $35.1 billion in August, despite steep US tariffs.

 

FTAs advancing on several fronts 

 

Goyal said discussions on free trade agreements (FTAs) were advancing with several countries, while domestic consumption was also supporting growth.

 

“With the European Union, we had good discussions in the last round. Their two commissioners of agriculture and trade visited Delhi, and the discussions made rapid progress. We may have another virtual or physical round soon,” he said.

 

The EU is India’s largest trading bloc partner in goods, with bilateral trade reaching $137.5 billion in FY24, up nearly 90 per cent over the past decade. The EU is seeking steep duty cuts on vehicles, medical devices, wine, spirits and dairy products, while India is pressing for greater access for its textiles, pharmaceuticals, steel and petroleum products, according to an EU official. Talks were held last week in New Delhi.

 

Separately, the European Commission announced its new “strategic agenda” on Wednesday, including measures on security, trade, technology, space and migration, adding that the two sides were “exploring the creation of an EU-India Security and Defence Partnership.”

 

On India’s trade pact with the United Arab Emirates (UAE), Goyal described it as the fastest free trade agreement concluded globally. He said the UAE served as a gateway to Africa, the Gulf and Eastern Europe and remained a key trading partner.

 

“There is a lot of investment interest from the UAE into India. I am very confident that this partnership will only strengthen further,” he said, adding, “India’s growing strength and the fact that we will be moving in the Amritkal from a $4 trillion economy to a $30 trillion-plus economy clearly show that India is the place to do business. The world would like to work closer with India.”

Unemployment rate at 5.1%

 

On unemployment, Goyal said: “We have recently come out with the lowest unemployment data at 5.1 per cent. It may be very attractive to keep saying that there is unemployment. However, when I met Larsen and Toubro, they told me they were unable to complete projects on time because they do not get enough workers. In fact, L&T’s IT company is also looking for people.”

 

The latest Periodic Labour Force Survey (PLFS) data has pointed to a declining jobless rate, supported by the start of the sowing season following a better-than-normal monsoon.