Trade strategy on table to achieve exports target of US$ 2 trillion by 2030
- IBEF
- December 5, 2023
The government is actively formulating a new foreign trade strategy to foster growth and collaboration. The objective is to achieve an ambitious target of US$ 2 trillion (₹149.40 lakh crore) in total exports (comprising goods and services) by 2030 while elevating India's global trade share from 2.7% to 10%. The Department of Commerce is in the final stages of crafting a strategy paper that aligns with the vision of trade as a catalyst for economic growth in tandem with the expansion of the Indian economy.
In recent months, the Department of Commerce engaged in extensive discussions with diverse stakeholders, including various government departments and entities such as the Indian Banks' Association (IBA), Export Credit Guarantee Corporation of India (ECGC), Exim Bank, and prominent trade bodies like the Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce & Industry (Ficci), National Association of Software and Service Companies (Nasscom), and Services Exports Promotion Council (SEPC), among others.
Despite gathering valuable insights from these key stakeholders, the government is currently deliberating on the optimal timing for releasing the strategy paper. This decision is influenced by ongoing geopolitical tensions and associated uncertainties, particularly in the context of the West Asian crisis. The strategy paper, once released, will address crucial aspects such as enhancing trade logistics, diversifying India's merchandise and services portfolio, and exploring opportunities in new markets.
The Federation of Indian Export Organisations (FIEO), in its recent recommendations for the services sector, has called on the government to empower small businesses. FIEO pointed out that stringent conditions, such as high tender bid amounts and annual turnover prerequisites, hinder the participation of small Indian consulting firms in government tenders. These criteria, such as requiring an annual revenue of Rs. 500 crore ($6.67 billion) and a workforce exceeding 1,000 employees for a Rs. 5 crore ($66.67 million) project, pose significant challenges for micro, small, and medium industries (MSMEs). FIEO recommended using bid bond guarantees through banking channels as a more effective alternative, highlighting that turnover alone doesn't necessarily reflect a company's expertise.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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