India must invest in branding and quality certification, says Sarangi
High collateral demand by financial institutions is a big deterrent for MSMEs to access institutional finance, and that discourages them from getting into the export market, says Santosh Kumar Sarangi, Director General, Directorate General of Foreign Trade.
“Through focus on trade finance, trade infrastructure, and export promotion schemes, we are trying to ensure export competitiveness,” he told the 4th National Exports Competitiveness Summit 2024 organised by the Confederation of Indian Industry (CII) in New Delhi.
Sarangi added that e-commerce exports represent a massive untapped opportunity for India. With the right infrastructure, including rapid customs clearance within minutes, India’s e-commerce exports could grow to US$200–$250 billion by 2030, transforming our trade landscape.
He called for a paradigm shift in India’s e-commerce export ecosystem by replicating best practices and creating export hubs with seamless pre-clearance https://www.bseindia.com/.
Furthermore, talking about the importance of branding, Sarangi said, “India must invest in branding and quality certification for its products. Large-scale efforts for branding India’s millets, basmati rice, fruits, vegetables, and emerging sectors like medical tourism must be taken to strengthen its export identity https://www.nseindia.com/ .”
Stressing on the need to enhance export competitiveness, Ajay Bhadoo, Additional Secretary, Department of Commerce, addressed a few key factors like diversifying India’s export basket, improving logistics, simplifying the ease of doing business, and increasing domestic investments in export-oriented industries https://sbi.com.in/.
Additionally, he stated that we need to prepare for the rising tide of global protectionism by focusing on quality, certifications, and compliance with non-tariff barriers.
“India has immense potential in services exports, which are already growing faster than merchandise exports. Sectors like medical tourism, IT, and professional services hold transformative potential. By focusing on such sectors, India can emerge as a global leader in service exports,” said Bhadoo.
Sanjay Budhia, Chairman, CII National Committee on EXIM and Managing Director, Patton International Limited, said, “Schemes like RoDTEP and the PLI programs have directly enhanced competitiveness https://www.ibef.org/.
“The Towns of Export Excellence Initiative and the Trade Infrastructure for Export Scheme (TIES) also underscore the Government’s commitment to strengthening infrastructure and fostering an enabling ecosystem for boosting exports from India.”
Narayan Sethuramon, Co-Chairman, CII Trade Policy Council and Managing Director, Sanmar Matrix Metals Limited, elaborated, “Competitiveness isn’t just about being the lowest-cost manufacturer. For Indian companies, the value proposition lies in quality, reliability, and lead time.
“Maintaining inventory in destination countries can be a game-changer, allowing us to meet lead-time expectations and strengthen our global competitiveness https://www.commerce.gov.in/.”
CII organised the 4th National Exports Competitiveness Summit 2024 in New Delhi on 18 Dec 2024 to discuss actionable strategies for boosting India’s export performance. Key areas of focus included addressing critical barriers such as infrastructure bottlenecks, logistics challenges, and regulatory hurdles; promoting quality and standards through the adoption of global benchmarks and sustainability practices; strengthening MSME support by improving access to export financing and market intelligence; and leveraging India’s strengths in the services sector to enhance its global footprint. Fiinews.com
