According to CII, India needs to closely integrate with global value chains to attract FDI inflows
New Delhi:
A multi-dimensional approach is needed to bring 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: The Roadmap”, released today, it says that concluding free trade agreements with major markets, attracting companies Globalization and resolution of domestic production problems are necessary to achieve the goal.
CII TV President Narendran said: “With a comprehensive and positive approach, the goal of reaching USD 1 trillion in merchandise exports by 2030 is indeed achievable if India carries out a strategic mission.
From January to December 2021, India’s merchandise exports exceeded $292 billion, up 43% year-on-year. The leading products contributing to export growth include iron and steel, mineral fuels, cotton, aluminum, vehicles, textiles, electrical machinery and grain, etc.
With such growth rates and government and industry working in tandem, export efforts can be enhanced to make India a global manufacturing powerhouse of the world, CII said.
The industry body outlined the products and destination markets that India should focus on and highlighted a range of policy actions to achieve the goal.
According to the industry body, the necessary goal of India at the moment is to integrate closely with global value chains and attract FDI inflows into its key sectors.
Based on the potential to gain global market share, 14 products were identified in the CII report as the products that could contribute the most to the increase in exports.
These include vehicles, textiles, electrical machinery and equipment, machinery, clothing, chemical products, plastics, pharmaceuticals, etc. The report also identifies 41 countries with export expansion opportunities that need to be addressed. Special attention.
“Currently, more than 20 trade deals are being negotiated including the UK, Canada, the European Union (EU), Australia, the United Arab Emirates and the GCC countries that need to be pushed forward.”
Furthermore, non-tariff barriers in existing trade agreements need to be addressed to open up market access, the CII report said.
It also highlights the need for investment agreements to be closely linked to trade agreements.
As investment-driven exports are a key feature of export capabilities, multinationals should be encouraged to set up production bases in India to strengthen their presence, the report said. country in the global value chain.
It is recommended that tariff rates under the Elimination of Tariffs and Taxes on Export Products (RoDTEP) program be extended to all sectors and align with existing additional taxes and costs. in the production ecosystem.
