With Concerns about a Global Slowdown Growing, India is Expected to Focus more on Service Exports

The government is expected to place a strong emphasis on increasing service exports as the global slowdown weighs on goods exports, particularly luxury goods. It also expects the Free Trade Agreements (FTAs) signed with Australia and the UAE to help exports as the world economy slows, according to the Times of India.

The global slowdown has prompted the government to prioritise increasing service exports, which it hopes to reach $300 billion this year. Following a 40% increase in the previous fiscal year, the target for goods exports is likely to be set at 10-12%.

It is expected that rising interest rates in the United States and other developed countries as a result of high inflation will limit export demand. This is especially true given last year's rapid expansion, which saw shipments increase to $418 billion in value.

The current situation between Russia and Ukraine has an impact as well. The World Trade Organization (WTO) has also reduced its year-end forecast. The commerce department, which has been working toward the goal, will wait for first-quarter results before making an announcement. When exports increased by slightly more than 15% in May, there were signs of a slowdown.