The PHD Chamber of Commerce and Industry (PHDCCI) recently released a report highlighting the significant potential for boosting India’s exports. This report, titled “India’s Emerging Export Dynamics: Vision $2 Trillion Exports by 2030”, emphasizes several key areas for enhancing India’s export capabilities.
Key Points from the PHDCCI Report
- Comprehensive Trade Pacts and FTAs: The exploration of new Free Trade Agreements (FTAs) is identified as a critical factor. These agreements are expected to be comprehensive, including both goods and services, to leverage India’s comparative advantage in the service sector. Till now, India has signed 13 FTAs. Further expansion and diversification through such pacts are crucial for India’s integration into global value chains. The report suggests potential FTAs with major economies like the EU and the UK to enhance India’s global trade footprint.
- Reduction in Business Costs: Lowering the costs of key inputs such as capital, power, land, logistics, and labor is essential. This reduction in business costs is aimed at increasing India’s export competitiveness and making it easier for domestic manufacturers to operate and export their products globally.
- Focus on Specific Export Products: The report identifies 75 potential export products based on global demand dynamics and India’s supply capabilities. These products, which include seafood, iron ores, vaccines, cotton and textiles, and wooden furniture, currently contribute about $222 billion, accounting for approximately 50% of India’s total exports. However, India’s share in these products is only 6% of total world exports, indicating a vast potential for growth in these areas.
- Economic Resilience and Growth: The report notes that India has emerged as one of the top resilient economies in terms of exports among the world’s 20 leading exporters. Post-Covid, India has seen an average annual growth of 14.8% in total exports, a significant increase from the 1.3% average growth in the pre-Covid period. This robust performance is attributed to various government measures and the inherent resilience of the Indian economy.
- Enhancing Export Infrastructure: Improving export infrastructure and lowering interest rates are also emphasized as key strategies. These measures are seen as integral to reaching the government’s ambitious target of $2 trillion in exports by 2030.
- Export Growth over the Last Decade: The report highlights the significant growth in India’s exports over the past decade, rising from $375 billion in FY11 to $770 billion in FY23. This growth trajectory underlines the country’s increasing global trade presence and potential for further expansion.
Conclusion
In conclusion, the PHDCCI’s report lays out a comprehensive strategy for India to achieve a significant milestone in its export journey. By focusing on comprehensive trade agreements, reducing business costs, targeting specific high-potential products, and enhancing export infrastructure, India is well-positioned to meet its ambitious export target of $2 trillion by 2030. The report underscores the importance of these measures in strengthening India’s position in the global market and enhancing its economic growth and resilience.