New Delhi, Nov 23: Measures like comprehensive trade pacts, reduction in cost of capital, power, and land reforms will help boost India’s exports of goods and services to USD 2 trillion by 2030, an industry chamber report said on Thursday.
The PHDCCI’s report also recommended schemes for 75 potential export products including marine items, iron ore, some chemicals, pharma, cotton, aluminium, and tankers to promote shipments.
“The 75 products have been identified from nine most promising sectors. These products contribute around USD 222 billion, which is around 50 per cent of India’s total exports. At the global level, these 75 products have significant presence in world exports, whereas India’s share of these products is only 6 per cent of the total world exports,” it said.
The report – India’s Emerging Export Dynamics: Vision USD 2 Trillion Exports by 2030. – added that India’s service exports have traditionally been concentrated in North America and Europe, but growing continents like Asia, Africa, and Latin America also offer plenty of scope for growth.
“New free trade agreement should be comprehensive as it will expand and offer diversification as India has a comparative advantage in the service sector,” the report said adding such pacts will offer a more balanced opportunity for the country’s competitive services sector.
It said that a cut in repo rate will lower the lending rates which will reduce the cost of capital for the businesses leading to an increase in domestic demand and enhancing the competitiveness of producers in the domestic market and exporters in the international market.
The report also said that due to steps taken by the government, costs associated with getting electricity have reduced significantly over the years. However, the per unit charges of power are still significantly high.
“Land is one of the most important factors of production. The government should focus on land reforms which will decrease the complexities for acquiring land, and will improve ease of doing business,” the report said.
It suggested that the government should focus on skill development of human resources which will increase the efficiency and productivity, increasing the competitiveness of firms in the international and domestic market.
On export infrastructure, it suggested that the infrastructure is not that much adequate given the rise in the export in the recent years and rail and ports are needed to be upgraded and scaled up to reduce the logistic cost in the country.
To tap the potential opportunity of the 75 products, it called for capacity building in those sectors such as participation in international trade fairs, exhibitions, and buyer-seller meets to showcase Indian commodities, and extension of export promotion schemes for these commodities.
“The dynamic policy environment provided by the government along with efforts of the exporters to connect with global value chains have enhanced the export volumes,” Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry, said.
Further, it said the emerging high growth destinations such as Togo, the Netherlands, Brazil, Israel, Indonesia, Turkey, Australia, and South Africa would enhance India’s export growth. (PTI)
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