Despite global headwinds, India’s exports of products and services could reach $900 billion in the current fiscal year, up from $770 billion the previous year, according to a top official of an exporters’ association.

According to Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO), merchandise exports could reach $495 billion to $500 billion in the fiscal year ending March 2024, while services exports could reach $400 billion.

He added that overseas demand remains strong in many markets.

However, in light of the potential consequences of the Ukraine crisis and a global recession, Trade Minister Piyush Goyal advised exporters to explore new markets.

“The times ahead are going to be very, very tough,” Goyal said late Wednesday at an industry gathering, warning of the conflict’s consequences.

The government of Prime Minister Narendra Modi has set an export target of $2 trillion by 2030, with incentives to expand exports of electronics, engineering, pharmaceuticals, and other items.

Over the last two years, India’s exports have surged by more than $200 billion, owing to a surge in software, mobile exports, and agricultural and petroleum products.

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However, exports of engineering, gems, and jewellery have slowed in recent months.

shipments of agricultural, petroleum, and electronic items remained strong in the Western markets due to pricing issues while shipments to Asian and Middle east countries have expanded dramatically, exporters stated.

Sahai, who was part of a 50-member business group to Russia last week, said there was a surge in demand for Indian commodities, notably food, following Western sanctions imposed in response to the Ukraine war.

“Indian exporters are hopeful that both countries would soon work out a mechanism allowing payments in local currencies that would facilitate the shipments of Indian goods to Russia,” Sahai said.

However, Indian authorities have stated that Russia is hesitant to accept rupee payments for its oil supplies.

India has not explicitly condemned Russia’s actions in February.