A multi-dimensional approach is needed to take the country's merchandise exports to $1 trillion by 2030, a report by industry body CII has noted.
Titled "Achieving $1 trillion in merchandise exports: A Roadmap", which was released today, it says that finalising free trade agreements with large markets, attracting global firms and addressing domestic manufacturing issues are needed to achieve the target.
"With a holistic and aggressive approach, the aim to achieve $1 trillion in merchandise exports by 2030 is indeed achievable if India undertakes a strategic mission," CII president T V Narendran said.
In January-December 2021, India's merchandise exports crossed $292 billion, a growth rate of 43 per cent over the previous year. The top products adding to export growth include iron and steel, mineral fuels, cotton, aluminium, vehicles, textiles, electrical machinery and equipment and cereals, amongst others.
With such growth and the government and industry working in tandem, the export endeavour can be strengthened to make India a global manufacturing powerhouse for the world, the CII said.
The industry body has outlined products and destination markets that India should focus on and highlights a range of policy actions towards meeting the target.
The need of the hour is for India to integrate closely with global value chains and to attract FDI inflows in its key sectors, according to the industry body.
Based on the potential to gain global share, 14 products have been identified in the CII report as those which can contribute the most to the increase in exports.
These include vehicles, textiles, electrical machinery and equipment, machinery, apparel, chemical products, plastics, pharmaceuticals, etc. The report also identifies 41 countries that offer opportunities to expand exports which must be given special attention.
"Currently, more than 20 trade deals are under negotiation including those with the UK, Canada, European Union (EU), Australia, United Arab Emirates, and the GCC countries which must be expedited".
Further, non-tariff barriers in existing trade agreements need to be resolved to open market access, says the CII report.
It also highlights the need for investment agreements to be well linked to trade arrangements.
As investment-led exports are a key feature of export capabilities, multinational companies must be encouraged to set up production base in India to enhance the country's presence in global value chains, says the report.
The rates under the scheme of Remission of Duties and Taxes on Exported Products (RoDTEP) need to be extended to all sectors and aligned to taxes and additional costs that are present in the manufacturing ecosystem, it recommended.