India propels itself into a $ 5,000 billion economy
New Delhi [India], Aug 11 (ANI): The Ministry of Trade and Industry (MoCI) has established a roadmap for a target of USD 1 trillion in merchandise exports by 2028 and probable exports of USD 700 billion at the same time, said BVR Subrahmanyam, Secretary, Department of Commerce, Ministry of Trade and Industry, adding that the ministry has undertaken a major campaign to identify and push 31 products across 200 countries with a target exports of $ 400 million by 2021.
According to the secretary, Indian exports have been stable at 200 million USD over the past 10 years. Over the past 7 years, the government has helped to strengthen the industrial base and is now issuing a report which will be sent to all embassies and the Ministry of Foreign Affairs, etc. to identify and strengthen business value with partners.
“AatmaNirbharta is all about building on our strengths, engaging with the rest of the world as equal partners in buying and selling high quality and high quality products,” Subrahmanyam said at the 2021 annual meeting of the Confederation of Indian Industry (CII).
He promised the industry a series of upcoming measures recognizing the importance of making India a hub for manufacturing and exporting.
“Over the past 5-7 years, the government has worked tirelessly to promote manufacturing, to allow industry to work hassle-free by monitoring compliance and reducing regulatory burden,” he said.
MOCI has definitive plans that align with Prime Minister Narendra Modi’s vision of “Making in India for the World” and “Local Goes Global” to manufacture and launch high quality Indian products in international markets. MOCI plans to cultivate India’s 700 districts to become export hubs. Districts will be assessed on the basis of a graduated scoring system to identify the top 100 districts that will receive financial support to develop export infrastructure.
The secretary further stressed that the government’s goal is to phase out non-WTO-compliant programs in favor of more recent international programs and policies that can put India on par with other international markets. With this in mind, the RoDTEP (Remission of Duties and Taxes on Export Products) regime was notified on January 1, 2021, replacing the current MEIS (Merchandise Exports from India Scheme).
The scheme will ensure that exporters receive refunds on previously unrecoverable incorporated taxes and duties. The scheme was put in place with the intention of stimulating exports which were previously relatively low in volume. Prices will be finalized soon and will be published this week. The foreign trade policy will cover the PLI regime and must be notified by the end of August and will be launched by mid-September so that exporting and manufacturing can be transparent.
The ministry is concerned that while the value of exports has remained constant over the past 10 years, the withdrawal of export incentives has tripled. The Secretary observed that 70 percent of Indian exports represent only a 30 percent share of products traded in the world, indicating the need to focus on low value products and export of raw materials to high value products.
It plans to put in place adequate monitoring of imports in real time, not with the aim of controlling imports, but to identify highly imported products likely to be manufactured in-house. These will be notified through industry associations like CII.
Subrahmanyam also explained the importance of improving last mile connectivity in the country for greater trade facilitation. He informed that the ministry is working on the development of the national master plan for logistics which facilitates the transfer of information, operability and facilitates the simplification of the process. He also said that efforts are being made to facilitate the transition from one mode of transport to another.
The secretary also mentioned that the authorities were working to promote the “India brand” which would help establish India as a global manufacturing hub and that it would also focus on improving policies for SEZs. by taking actions such as denotifying spaces that are currently empty.
Speaking of service exports, Subrahmanyam mentioned that there is a need to develop a streamlined policy for the same, which would require bringing all ministries and authorities together on a common platform. He said work is underway for the service sector and the target is to export USD 700 billion in 2027-2028.
Subrahmanyam stressed the need to conclude more free trade agreements in a balanced way for greater regional integration and said that there are 20 FTAs under negotiation including UAE, UK, Canada and Australia. 6 FTAs are also accelerated. He strongly emphasized that India must engage with the rest of the world for the growth of trade.
Sanjiv Bajaj, President-elect, CII, commended the government for adopting a well-planned economic strategy to promote self-reliance while ensuring further integration into global value chains. He said that these policies that promote the growth of the manufacturing sector are crucial for job creation and improving competitiveness. Mr. Bajaj also underlined the need to develop a foreign trade policy which is in line with the broader industrial policy.
Chandrajit Banerjee, Director General of CII, commended the Indian government for taking a collective and comprehensive approach to meet the export target of $ 400 billion for this year. He said that the currency of local goes global will go a long way in integrating the smaller players in the international production network. Mr. Banerjee reiterated CII’s commitment to strengthen the industry-government partnership to respond to the export agenda. (ANI)