Dawra emphasises on quality and global standards to be in the world market
The PHD Chamber of Commerce and Industry has identified 75 potential export products and markets to enhance and increase India’s exports to achieve US$400 billion in 2021-22 and US$750 billion in the next 75 months by 2027.
While unveiling a report on “Achieving a higher exports growth trajectory: 75 potential products and markets’, Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, said major focus for the next 75 months would be on markets such as the USA, Canada, Germany, France, the UK, Japan, the UAE, China, Mexico, Australia, among others to achieve US$750 billion export target by 2027.
The clarion call given by Prime Minister Narendra Modi for ‘Atmanirbahr Bharat’ to fulfill the dream of making the 21st century belongs to India along with announcing the ambitious target of boosting merchandise exports to US$400 billion in 2021-22 are highly encouraging and will strengthen India’s position in the global economic system, Aggarwal said in a release on 9 Sept 2021.
The 75 identified products are from nine most promising Sectors and 31 Chapters. The sectors include Agriculture; Mineral and Fuels; Chemical and Allied Products; Textile & Footwear; Metal and Non Metals; Machinery and Mechanical Appliances; Transport/Automobiles; Optical Photographic & Cinematographic and; Toys, Games and Sports.
The quality and global standards will help India to leap into the world market, Sumita Dawra, Additional Secretary, DPIIT, Ministry of Commerce and Industry, emphasised at the PHDCCI workshop on ‘Exploring export opportunities: Ways to achieve US$400 billion exports target in FY 2021-22’.
“The use of technologies in India’s products and right perception of the country’s ecosystem can attract more investments,” said Dawra.
Despite facing numerous challenges in manufacturing and logistics, the recent export growth has been more satisfying and shows that industry is better equipped to achieve the target of US$400 billion merchandise exports, she noted.
The Government has undertaken many initiatives to increase the export potential of India, wherein PLI Scheme, National Single window System, Industrial park rating system, among others are providing opportunities for manufacturing sector to accelerate exports and ease of doing business, Dawra pointed out.
Currently, these 75 potential products contribute around US$127 billion, which is around 46% of the total exports from India, added Aggarwal. At the global level, these 75 products also have significant 21% presence in the total global exports, whereas India’s share of these 75 products currently is only 3.6%.
The focus on these 75 potential products would create ease of doing business, enhanced production possibilities, linkages with global value chains, innovative technologies to create economies of scale in production to become more and more competitive in global markets, said Aggarwal.
The study has found high trade to GDP correlation for India at 0.94 as well as high export to GDP correlation at 0.95. This indicate as export grows, the economic growth trajectory becomes strong and sustainable, he said.
Economies such as the UAE, Germany, China, Singapore, the USA and UK also hold a high degree of correlation of trade to GDP and exports to GDP of more than 0.9, he said.
The growth prospects of India’s top 25 export destinations are bright with their average GDP growth projections estimated to be 4.1% (average) for 2021. This indicates that the target set for US$400 billion in 2021-22 is very much realistic and achievable, said Aggarwal.
Going ahead, the policy reforms such as flexible labour laws, enhanced participation of women in labour force, improved ease of doing business, particularly for MSMEs along with the reduced cost of doing business, such as costs of capital, costs of power, costs of logistics, costs of land and availability of land, costs of compliances and cost of labour, would go a long way to enhance and increase the export growth trajectory and to achieve US$750 billion goods export target by 2027, said Sanjay Aggarwal.
Speaking at the Technical Session on ‘High Potential Products and High Potential Markets’, Prof (Dr.) Ram Upendra Das, Head, Centre for Regional Trade, said that it is important to analyse the existing market where India has already duty preferences and zero duty regime.
Exporters may take the advantage of these duty preferences. He opined that the considerable information gap among the private players needs to be fulfilled in terms of knowledge of rules of origins and other technical aspects, he said. #exports #investment #manufacturing #economies /fiinews.com
