The Indian economy has steadily progressed despite various global headwinds, including the pandemic, the Russia-Ukraine war and geopolitical challenges. With a GDP growth rate of 8.7% in FY22, India envisions a plethora of new opportunities with a predictable, progressive and inclusive policy environment. Exports have been a key driver of growth over 2021-22 and the CII National Export Summit aims to accelerate the export momentum for the country.
In FY 22, India’s overall exports (merchandise and services) reached an all-time high at US $ 669.65 billion, which was 34.5% more than the preceding year. The value of merchandise exports touched US$ 419.65 billion, while services exports rose to US$ 250 billion. This was a milestone moment for India, as it was the first time both exports had reached an all-time high.
To sustain this growth and help India achieve the set target of US$ 1 trillion in merchandise and US$ 1 trillion in service exports by 2030, strategies need to be devised at both domestic and international level. The integration of India into global value chains (GVCs) assumes great importance here. GVCs offer the opportunity to engage with the most advantageous part of the value chain, instead of producing a completed product with reduced average cost. This will facilitate greater economic growth, job creation, income generation and tax revenue.
The Government of India has been proactive in creating a conducive regulatory environment that fosters globally competitive firms. Several reform initiatives have been introduced which have been the key to enhance export potential of the Indian economy. Some of these notable measures include the introduction of the Production Linked Incentive scheme (PLIs), corporate tax rate cuts, simplification of labour laws by codification and increased focus on human capital.
Free trade agreements (FTAs) are crucial for the continued growth of Indian exports and these need to be further leveraged. India is currently party to thirteen FTAs, including the 2 agreements, namely India-UAE Comprehensive Partnership Agreement (CEPA) and India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA) signed this year. India is also negotiating FTAs with countries and regions including Canada, UK, and EU.
With geopolitics being in a state of flux, the market scenario is constantly changing. To keep up with this evolving scenario, India needs to focus on the export potential of its micro, small and medium scale enterprises (MSMEs).
Exporters need to be able to comply with global standards and certifications to be able to access the markets. This requires a range of actions both by the Government as well as by industry to attain the best levels of quality and acquire the necessary certifications.
For a holistic approach to boosting exports, India’s state governments must be more proactive in creating the right business environment and facilities. Infrastructure, industrial parks, adequate power, and quick administrative processes are required to be in place at the state level.
Against this backdrop, CII is organizing the National Exports Summit to discuss and deliberate on the need for strategic integration into GVCs for better export and economic prospects, as well as an open and facilitative environment that will encourage value-added exports. The Summit will focus on developing an enabling trade and investment policy, liberalizing services sectors and understanding how to leverage trade agreements. It will bring together ideas from various sectors of the industry for enhancing Indian exports.
CII plays a key role in helping Indian exporters build quality in the global markets and engages with overseas investors, governments and businesses on a continuous basis to take forward the India economy narrative and build the India brand image. These interactions help create the desired networks for facilitating exports. It also provides support in export promotion, marketing, export training, providing common learning facilities and industrial hubs and promoting the benefits of upcoming FTAs.
Register at https://bit.ly/3VN8ZpB.