Interacting with Heads of Indian Missions abroad and stakeholders of trade and commerce virtually, Modi pointed out four factors that are very important for accelerating outward shipments from India
PM Narendra Modi
Prime Minister Narendra Modi on Friday spelt out a strategy to boost export of goods from India, a move aimed at lifting a sagging economy amid the outbreak of the pandemic.
Interacting with Heads of Indian Missions abroad and stakeholders of trade and commerce virtually, Modi pointed out four factors that are very important for accelerating outward shipments from India — increasing domestic manufacturing, ironing out problems of transport, logistics, need for the Centre and state governments to walk shoulder to shoulder with the exporters and expanding international market for Indian products.
The larger idea of the interaction aimed at encouraging stakeholders towards expanding India’s export potential and utilizing the local capabilities to fulfil the global demand.
Towards this, the Prime Minister said there is a need for diversification of India’s export basket as well as identification of new products that can be exported and relevant markets for such items and prepare strategies for that. Presently, India’s export basket has been dominated by products with engineering goods, petroleum products, gems and jewellery, pharmaceuticals being the top items.
“At present our exports are about 20 per cent of GDP. Considering the size of our economy, our potential, the base of our manufacturing and service industry, it has the potential to grow a lot,” Modi said, adding that India needs to have a seamless and high quality supply chain and low-cost logistics to boost exports.
Robust exports can boost economic growth at a time when private consumption as well as investment have been tepid due to the disruption caused by the pandemic.
The interaction comes at a time when the Centre has set a target of $400 billion worth merchandise exports in the current fiscal. India has met nearly a third of its annual target in the first four months of 2021-22.
Over the last nine years, merchandise exports from India have hovered around $260-330 billion, with the highest ever being $330 billion in 2018-19. July saw the highest ever merchandise exports at $35.17 billion. The government has set up a target of $1 trillion in 2027-28 for merchandise exports and $500 billion exports in the next two years.
The government had earlier said that targets have been disaggregated via regions and countries, commodity groups, and export promotion councils. Ambassadors and high commissioners have also been given the targets for their territory, breaking it up into various commodity groups. The government is also working out detailed strategies for trade deals, promoting districts as export hubs, import monitoring and using market intelligence for exporters.
“It is time for a new journey with new goals for Brand India. This is the time for us to establish a new identity of quality and reliability. We have to see that there is a natural demand for high value-added products of India in every nook and corner of the world,” he said.
Besides, the Centre and states are also trying to reduce regulatory burden for exporters.
“Our exporters doing business in different countries of the world know very well how big the impact of stability is. The decision taken by India to get rid of retrospective taxation shows our commitment, shows consistency in policies,” he added.
The interaction also witnessed participation of more than 13 union ministers, ministers of states and commerce and Industry and external affairs, secretaries and other senior officials of more than 30 Ministries, 200 Heads of Missions and Consulates and 200 members of economic wings of missions and consulates, stakeholders of the trade and commerce sectors such as export promotion councils, Federation of Indian Export Organisations (FIEO), Confederation of Indian Industries (CII), among others.