<\/p>\n
News<\/strong>: <\/span>The year 2021 was a record one for trade despite the pandemic. The world merchandise trade volume grew at twice the rate of world GDP at market exchange rates in the two decades before the global financial crisis.\u00a0 <\/span><\/p>\n According to the WTO, the <\/span>World merchandise trade volume is expected to grow at 3% in 2022 and 3.4% in 2023.\u00a0<\/span><\/p>\n India has had a good export run in line with global trends. India witnessed record goods exports of $419 billion, while touching $250 billion in services exports.<\/span>\u00a0<\/span><\/p>\n What are the new opportunities?<\/span><\/b>\u00a0<\/span><\/p>\n The exporters (including Indian) look to tap into <\/span>newer agricultural commodity export<\/span><\/b> opportunities. Ukraine and Sri Lanka which are major exporters of agricultural products are having limited presence in global trade.\u00a0<\/span>\u00a0<\/span><\/p>\n The new opportunities will <\/span>spur overall exports<\/span><\/b> and will also help to support the <\/span>recovery <\/span><\/b>of the <\/span>agrarian economy<\/span><\/b> through higher realisations.\u00a0<\/span>\u00a0<\/span><\/p>\n The food security in Europe and Africa depends on wheat supplies from Russia and Ukraine. Therefore, India has new opportunities for <\/span>wheat export<\/span><\/b> in these <\/span>new markets<\/span><\/b> and supplies have been disrupted.<\/span>\u00a0<\/span><\/p>\n Sri Lanka (the largest producer of tea) is a major player in the <\/span>global tea market. <\/span><\/b>Almost 98 per cent of its annual production is exported. Sri Lanka is a major player in<\/span> textile export<\/span><\/b>. However prolonged power cuts in the island nation will hurt its production and export capacity.\u00a0<\/span>\u00a0<\/span><\/p>\n India has <\/span>newer export opportunities<\/span><\/b> in <\/span>tea<\/span><\/b> and <\/span>textile export<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n In addition, major <\/span>global garments brands<\/span><\/b> such as Zara and H&M have been reportedly looking towards India. Chinese factories are locked up due to a Covid surge and the Asian exporters like Bangladesh, Vietnam and Cambodia lack the capacity to fill the void. Therefore, India can seize this opportunity.<\/span>\u00a0<\/span><\/p>\n The <\/span>ratio<\/span><\/b> between trade and GDP growth may fall to <\/span>1.1:1<\/span><\/b> in 2022 and 2023 due to slower <\/span>global growt<\/span><\/b>h, an <\/span>adverse geopolitical environment<\/span><\/b>, the shadow of <\/span>recurring waves<\/span><\/b> of the pandemic and prolonged <\/span>supply chain issues<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n One, the government should work on <\/span>non-tariff barriers<\/span><\/b> for agricultural trade with a special focus on harmonising the <\/span>sanitary and phytosanitary (SPS)<\/span><\/b> requirements. The government should implement <\/span>sector-specific measures<\/span><\/b> and strengthen the <\/span>traceability system<\/span><\/b> in supply chains.\u00a0<\/span>\u00a0<\/span><\/p>\n Two, to support tea exports, <\/span>traditional tea boards <\/span><\/b>should be given greater role and autonomy for optimising the <\/span>development<\/span><\/b>, <\/span>promotion<\/span><\/b>, and <\/span>research<\/span><\/b> in the sector. The proposed <\/span>Tea Promotion and Development Act<\/span><\/b> should be implemented.<\/span>\u00a0<\/span><\/p>\n Three, India must <\/span>integrate<\/span><\/b> with <\/span>global supply chains<\/span><\/b>. A slew of <\/span>trade deals.<\/span><\/b> and <\/span>a new pro-trade policy<\/span><\/b> should work in this direction.\u00a0<\/span>\u00a0<\/span><\/p>\n Four, <\/span>tariff rates <\/span><\/b>for <\/span>intermediate input<\/span><\/b>s should be reduced to either <\/span>zero<\/span><\/b> or should be negligible for India. It will make India an attractive location for <\/span>assembly activities<\/span><\/b>.\u00a0<\/span>\u00a0<\/span><\/p>\n Five, India should create an <\/span>enabling ecosystem <\/span><\/b>that realigns its <\/span>specialisation patterns<\/span><\/b> towards <\/span>labour-intensive processes<\/span><\/b> and <\/span>product lines<\/span><\/b>. The <\/span>labour market reforms<\/span><\/b> must be taken.\u00a0<\/span>\u00a0<\/span><\/p>\n Six, a continuous and pro-active <\/span>FDI policy<\/span><\/b> is critical. The <\/span>foreign capital<\/span><\/b> and <\/span>technology transfer<\/span><\/b> enables entry of local firms into <\/span>global production networks<\/span><\/b>. The local firms play a role as subcontractors and suppliers of intermediate inputs to MNEs.<\/span>\u00a0<\/span><\/p>\n Seventh, the issue of <\/span>logistical bottlenecks<\/span><\/b> should be taken care of by the government. <\/span>The Economic Survey 2019<\/span><\/b> had recommended that low <\/span>levels of service link costs<\/span><\/b> (costs related to transportation, communication, etc) are prerequisites to strengthen their participation in GVCs.\u00a0<\/span>\u00a0<\/span><\/p>\n Source<\/span><\/b>: The post is based on an article \u201cIndia must seize the trade opportunity opening now\u201d published in the Indian Express on 06<\/span>th<\/span> May 2022.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" News: The year 2021 was a record one for trade despite the pandemic. The world merchandise trade volume grew at twice the rate of world GDP at market exchange rates in the two decades before the global financial crisis.\u00a0 According to the WTO, the World merchandise trade volume is expected to grow at 3% in… Continue reading India must seize the trade opportunity opening now\u00a0<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10500],"class_list":["post-183100","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700807293,"cached_date":1704868822},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/183100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=183100"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/183100\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=183100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=183100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=183100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Status of India\u2019s exports<\/span><\/b>
\n<\/span><\/h5>\nWhat are the challenges?<\/span><\/b>\u00a0<\/span><\/h5>\n
Measures to tap export opportunities in developed markets<\/span><\/b>\u00a0<\/span><\/h5>\n