{"id":50883,"date":"2019-08-03T19:00:25","date_gmt":"2019-08-03T13:30:25","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?p=50883"},"modified":"2019-08-03T16:11:41","modified_gmt":"2019-08-03T10:41:41","slug":"7-pm-a-two-track-plan-to-raise-exports-to-1-trillion-3rd-august-2019","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/7-pm-a-two-track-plan-to-raise-exports-to-1-trillion-3rd-august-2019\/","title":{"rendered":"7 PM | A two-track plan to raise exports to $1 trillion | 3rd August, 2019"},"content":{"rendered":"\n<p><strong>Context:<\/strong> measures to increase\nexports<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>India\u2019s share in world exports is still very small at 1.8 per cent in 2018 compared to China\u2019s 13.8 per cent. India should aim at raising its share in world exports to at least a respectable 5 per cent. <\/li><li>For this, India\u2019s exports (of goods) should reach around US$ 1000 billion by 2020 which means India\u2019s export growth rate needs to be around 27 per cent CAGR in the 5 years (2016-2020) assuming that global growth continues at the present CAGR of 1.5 % (2010-15).<\/li><li>Most of Indian exports fall under two groups<ul><li><strong>Group A:<\/strong> products include electronics, computers, telecom, factory machinery, and high-end engineering products. India\u2019s global share in such products is 0.4 per cent, but group A products account for 70% of world trade.<\/li><li><strong>Group B:<\/strong> India has a high global share in group B products such as small diamonds, jewellery, rice, buffalo meat, shrimps, and textiles. Medicines, auto components and marine products also form part of this group. And group B products for 30% of world trade.<\/li><\/ul><\/li><\/ul>\n\n\n\n<p><strong>Measures\nto improve exports of group A category:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Target product market:<\/strong> It is\nimperative to identify the focus product baskets, where India has established\ncredibility, growth potential is high like ferrous casting, steel forging. The\nselection of the target markets needs to be done based on the future demand,\nacceptability of Indian products, and India\u2019s competitiveness in those markets.<\/li><li><strong>Trade\nagreements alignment to get maximum benefits from preferential tariffs:<\/strong>\nRecently government officials on different occasions mentioned that Indian\ntrade agreements are not adequately aligned with countries that have\nconsumption potential. <\/li><li>Recently, India\u2019s engineering exports\nhave been led by developed nations such as USA, EU, Middle East, and these are\nnow fast shifting towards emerging economies such as SAARC, ASEAN, Africa, CIS,\nand Latin America. <\/li><li>Therefore, it is critical that future\npolicy actions focus more on the emerging destinations with high potential of\nexport to boost India&#8217;s overall exports. The trade negotiations should have\nrepresentations from the industry to include relevant tariff lines and\nappropriate Rules of Origin (ROO) criteria to benefit Indian exporters.<\/li><li><strong>Counter\ntrade and offset measures:<\/strong> India has significant trade deficit in\nengineering goods with some specific countries where counter trade measures\ncould be explored, to increase export and involvement of SMEs. <\/li><li>India has significant trade deficits\nwith countries such as China, Iran, Saudi Arabia, Australia, Indonesia, Kuwait,\nNigeria, Qatar, Peru, Argentina, Ghana, etc. The government could consider\ndevising a counter trade mechanism for identified product categories<\/li><\/ul>\n\n\n\n<p><strong>Measures to\nimprove exports of group B category:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><em><strong>Create product design and development studios:<\/strong><\/em> The MSME Ministry facilitates many centres that assist small\nfirms in developing new prototypes. We need to scale these to include the\nlatest tools and also increase their number. This will help innovation-driven\nsmall firms and reduce dependence on import of daily-use goods.<\/li><li><em><strong>Set up product quality testing labs<\/strong><\/em><strong>:<\/strong> Many small firms are not aware of quality\nstandards\/certifications. They get a shock when products are rejected. India\nneeds to set up more globally accredited testing laboratories. And, enhance\ncapacities of the existing laboratories.<\/li><li><em><strong>Open\nlarge product exhibition centres cum markets<\/strong><\/em><strong>:<\/strong> China has many\nsizeable wholesale markets where local firms display their products to a large\nnumber of foreign buyers. Such exchanges will help small firms to showcase\ntheir products and get orders without travelling abroad.<\/li><li><em><strong>Provide actionable trade intelligence<\/strong><\/em><strong>:<\/strong> Simple information like which country is buying what product\nat what price helps. Data suggests that a firm exporting two similar category\nproducts (for example, boy\u2019s shirts and men\u2019s shirts) has three times the turnover\nthan the firm shipping only one product (boy\u2019s shirts).<\/li><li>Data also reveal that a\nfirm exporting one product to three countries has five times the turnover than\na firm exporting to one country. With bits of such information, most firms can\nreadily scale turnover and earn more money.<\/li><li><em><strong>Reduce cost of doing business<\/strong><\/em><strong>:<\/strong> This can be achieved by improved access to capital, quick\nrefund of GST, online regulatory approvals, low duty on inputs, promoting\ne-commerce exports from Tier 2\/3 cities, and so on.<\/li><\/ul>\n\n\n\n<p><strong>Way\nforward:<\/strong> Even though the exports target of $1000\nbillion by 2020 looks unrealistic, India can achieve significant exports growth\nif it implements the right mix of sustainable policies in a time-bound manner.\nIt is high time we realize there is no short cut to boosting exports and the\nphasing out of export subsidies is a reality. Measures such as enhanced trade\nfacilitation, export and production diversification, lower logistics costs,\nenergy efficiency, lower cost of doing business-and not short-term fixes-will\nlead to sustainable exports recovery.<\/p>\n\n\n\n<p>Source: <a href=\"https:\/\/www.thehindubusinessline.com\/opinion\/a-two-track-plan-to-raise-exports-to-1-tn\/article28799025.ece\">https:\/\/www.thehindubusinessline.com\/opinion\/a-two-track-plan-to-raise-exports-to-1-tn\/article28799025.ece<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Context: measures to increase exports India\u2019s share in world exports is still very small at 1.8 per cent in 2018 compared to China\u2019s 13.8 per cent. India should aim at raising its share in world exports to at least a respectable 5 per cent. For this, India\u2019s exports (of goods) should reach around US$ 1000&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/7-pm-a-two-track-plan-to-raise-exports-to-1-trillion-3rd-august-2019\/\">Continue reading <span class=\"screen-reader-text\">7 PM | A two-track plan to raise exports to $1 trillion | 3rd August, 2019<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[130,9],"tags":[],"class_list":["post-50883","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-7-pm","category-public","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2019\/07\/7-PM.png?fit=1000%2C500&ssl=1","views":{"total":0,"cached_at":"","cached_date":1704759535},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/50883","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\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=50883"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/50883\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49370"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=50883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=50883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=50883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}