Services exports in April performed well to reach $27.60 bn, which is an increase of nearly 53% over April 2021. This data is encouraging. Exports of services hit a new record of $254.4 billion in FY 2021-22, against the previous high of $213.2 billion in FY 2019-20, and due to this the Centre recently raised the services export target for FY23 from $300 bn to $350 bn. Sounds encouraging again.

According to experts, the revised exports target is in the background of the fact that services exports performed well last fiscal although sectors like travel & tourism, aviation and hospitality were hit severely by the Covid-19 pandemic during the period. Now, with the situation improving, it is expected that these sectors will see sharp recovery in FY23. The April services exports data indicates that the revised target is within the reach.

According to the Service Export Promotion Council, during the current financial year, the focus will also be on sectors including market research, consulting, engineering, and construction. Also, to help the Centre achieve the revised target, the Council will come up with a detailed mapping of sectors' achievements and sectors that should be given incentives. Such efforts are welcome. We need a comprehensive trade strategy in this direction.

Merchandise exports also performed well in April, scaling a new high by crossing $40 billion, and according to reports, the Centre is likely to set a merchandise export target of around $450-480 billion for 2022-23. So, together with the exports target of $350 billion for services, India’s total exports target for both goods and services together will reach $800 billion, which is seems difficult but achievable.