Proposed trade promotion body to drive Indian exports

Source: The post is based on the article “Proposed trade promotion body to drive Indian exports” published in the Livemint on 3^rd October 2022.

What is the News?

As a part of the government’s plan to revamp the department of commerce, the government proposed a dedicated trade promotion body.

What is the need for the proposed trade promotion body?

a) India’s exports are facing challenges due to a demand slowdown in key economies amid rising interest rates and geopolitical tension, b) It is part of the government’s strategy to make the department of commerce future-ready and take India’s exports from $650 billion to $2 trillion by FY31, c) At present, India have multiple export promotion council. Japan and Korea have benefitted from one key organization or single umbrella trade body like KOTRA in South Korea or JETRO in Japan.

What are the key features of the proposed trade promotion body?

The trade promotion body will act as a single data source for exporters and buyers. It will act as a marketplace for exporters, connecting them to buyers. It will also train exporters and organize buyer-seller events with a focus on strengthening supplies and bolstering demand.

Coverage: The trade promotion body will cover 13 elements, including ‘brand India’, government-to-government liaising, industry liaising and exporter training. The body will drive the overall export promotion strategy and export targets and monitor execution.

It is in line with the government’s broad goal of projecting 100 Indian brands as global champions and placing India in the top three of the global services trade by 2047 in sectors such as tourism, IT&ITeS, business services, healthcare and wellness and education.

Operational autonomy: The body will enjoy operational independence and oversight from the department of commerce.

Composition: The trade promotion body will have government and private sector talents.

Key responsibilities: This includes hiring the best private sector talent, operational independence and target-setting and monitoring for sectors, states, and foreign missions, etc.

What are the challenges in setting up the proposed trade promotion body?

The government has already created a Centre for Regional Trade. So, there is no clarity on how the trade promotion body will be implemented and structured.

What should be done to make the proposed trade promotion body effective?

a) The government must ensure its independence in functioning, b) Trade promotion councils and bodies should have representation from across the country, not just in a few chambers of commerce in Delhi. For example, in textiles, it is important to have representatives from Coimbatore and Tiruppur.