Aggarwal sees export growth in double digits in five years
Relief measures provided by the Government has significantly benefited the exporters to resume a normal exports growth trajectory with 2021-22 exports projected at US$545 billion, a whopping growth 12% from 2020-21’s US$487 billion by the PHD Chamber of Commerce and Industry.
“We project US$545 billion exports with a double-digit exports growth rate of 12% in 2021-22,” PHD Chamber President Sanjay Aggarwal said in a press statement on 19 Mar 2021.
On the back of plethora of economic reforms undertaken by the Government during the last one year to mitigate the daunting impact of COVID-19 on trade and industry and to boost the competitiveness of the Indian exporters, the country’s exports (merchandise & services) are expected to increase in the double digits in next financial year 2021-22, said Aggarwal.
“Going ahead, with continued emphasis aimed at facilitation and enhancement of competitiveness of our exporters, there exists much more potential to enhance India’s export performance to a significantly higher growth trajectory amid gradual recovery in the global economic scenario, said Aggarwal.
Nevertheless, India’s exports faced a challenging time on account of subdued global economic outlook, disrupted supply chains and overall depressive demand scenario in the international markets, he pointed out.
The exports in the most difficult year of pandemic Covid-19 are seen consolidating at around US$487 billion (merchandise & services) with a decline of (-)8.8% form the level of US$534 billion achieved in 2019-20, said Aggarwal.
The merchandise exports in 2020-21 are seen consolidating at around US$283 billion with a decline of around (-)9.5% from the level of US$313 billion achieved in 2019-20 whereas services exports are projected at US$205 billion with a decline of (-)7.2% from the level of US$221 billion achieved in 2020-21.
“Now the worst is behind us and we are optimistic and projecting a exports growth of 12% in 2021-22 with an increase of US$58 billion from US$487 billion in 2020-21 to US$545 in 2021-22,” said Aggarwal.
The merchandise exports are projected at US$320 billion in 2021-22 with a growth rate of 13% from the level of US$283 billion in 2020-21 and services exports are projected at around US$225 billion with a growth rate of 9.7% from the level of US$205 billion in 2020-21.
During the recent years, the Government has undertaken a series of economic and business reforms with a thrust to promote trade and ease of doing business in the country. There has been a major push for trade facilitation with continuous efforts to improve trade infrastructure, single window clearances, reduction in the number of documents required for clearances, digitalization of various application processes, simplification of various export incentive schemes, among others, Aggarwal noted.
The relief measures announced by the Government including extension of Interest Equalization Scheme on pre & post shipment rupee export credit, launch of Common Digital Platform for Certificate of Origin, setting up of Control Room to monitor the issues of trade and industry, among others have facilitated the exporters to fulfill their export orders and to recover to a normal growth trajectory.
Furthermore, the announcement of various banking and financial sector relief measures to support domestic industry, especially Micro, Small & Medium Enterprises (MSMEs), which constitute a major share in exports along with the recent Cabinet approval of Production-Linked Incentive (PLI Scheme) to key Sectors including Electronic and Technology Products, Automobiles & Auto Components, Telecom & Networking Products, Textile Products, Food Products, among others would go a long way to re-energies India’s exports growth trajectory and increase its presence in the world economic system, Aggarwal highlighted.
Going ahead, the strategy to achieve higher growth trajectory of exports in goods and services by FY2025 must focus on more prospective products to scale up the export volumes. Focus must be on strengthening the export growth momentum towards emerging and developing economies through greater access in the Asian and African economies, stressed Aggarwal.
Structural improvements in export and logistics infrastructure, developing the supply chains and value chains of MSMEs and enhancing the overall ease of doing exports would go a long way to push growth trajectory of exports to the next level, said Aggarwal.
He called for efforts to improve the country’s competitiveness in areas such as the agro and food processing products, textiles and garments, gems & jewellery, drugs & pharmaceuticals, vehicles, parts & accessories of vehicles, petroleum oils, sports goods, furniture, information technology & information technology enabled services (IT &ITeS), accounting and finance services, audio visual services, legal services, communication services, fashion and lifestyle, among others. #exports #economies #manufacturing #investment /fiinews.com
