India has set out plans to revitalise and double the country’s exports by 2025 with a specific strategy being prepared for leather, textiles and apparel.
Suresh Prabhu, Minister for Commerce, Industry and Civil Aviation, chaired a meeting of export stakeholders and Commerce Ministry officers earlier this week to discuss the strategy, which he says is necessary to offset challenges such as global trade uncertainty, high logistics costs, and productivity standards and qualities.
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In 2017-18, the country’s merchandise exports grew by 10% to US$303bn, while services exports rose by 18.8% to $195bn. Readymade garment exports, meanwhile, declined by nearly 4% to $16.7bn.
The implementation of the GST in July last year – a nationwide tax levied at each stage of the supply chain from manufacture to final sale to the consumer – led to a blockage of funds for the export community, while other export incentives such as duty drawback and rebate on state levies (ROSL) were reduced.
The Commerce Minister has held two meetings with key Ministries for preparing sectoral export strategies, which are now being finalised. The Federation of Indian Export Organisations (FIEO) has also carried out a study identifying $100bn worth of exports in traditional, new markets and products.
Territory specific strategies, including textiles and apparel, will cover the North American Free Trade Agreement (NAFTA), Europe, North East Asia, ASEAN, South Asia, Latin America, Africa and WANA, Australia, New Zealand, and CIS.
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By GlobalDataPrabhu told the meeting that apart from traditional markets, India must also look at boosting trade with smaller countries and explore new territories like Africa, which has 54 countries but accounts for only 8% of exports.
The Minister also exhorted exporters to not miss the opportunity presented by China’s consumer market and make the most of the world’s mega import expo being held in China in November.
