No. PR- 098
September 9, 2021
Industry body PHDCCI unveils report on 75 potential export products and markets to enhance and increase exports
The Industry Body envisions to achieve USD 750 billion goods exports in the next 75 months by 2027
The industry body PHDCCI has identified 75 potential export products and markets to enhance and increase India’s exports to achieve USD 400 billion goods export target in 2021-22 and USD 750 billion goods exports in the next 75 months by 2027.
While unveiling the report on Achieving a higher exports growth trajectory: 75 potential products and markets, Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, said that USA, Canada, Germany, France, UK, Japan, UAE, China, Mexico, Australia, among others would be the major focused markets in the next 75 months to achieve the goods export target of USD 750 billion by 2027.
The clarion call given by Hon’ble Prime Minister Shri Narendra Modi ji for Atmanirbahr Bharat to fulfill the dream of making the 21st century belongs to India along with announcing the ambitious target of boosting merchandise exports to USD 400 billion in 2021-22 are highly encouraging and will strengthen India’s position in the global economic system, said Sanjay Aggarwal.
The industry body has identified 75 potential products from 9 most promising Sectors and 31 Chapters. The sectors include Agriculture; Mineral and Fuels; Chemical and Allied Products; Textile & Footwear; Metal and Non Metals; Machinery and Mechanical Appliances; Transport/Automobiles; Optical Photographic & Cinematographic and; Toys, Games and Sports.
Speaking at the Workshop on ‘Exploring export opportunities: Ways to achieve USD 400 billion exports target in FY 2021-22’, Ms Sumita Dawra, Additional Secretary, DPIIT, Ministry of Commerce and Industry, Government of India, mentioned that the quality and the global standards will help India to jump off into the world market. The use of technologies in India’s products and right perception of the country’s ecosystem can attract more investments.
She said that despite facing numerous challenges in manufacturing and logistics, the recent export growth has been more satisfying and shows that industry is better equipped to achieve the target of USD 400 billion merchandise exports. The Government has undertaken many initiatives to increase the export potential of India, wherein PLI Scheme, National Single window System, Industrial park rating system, among others are providing opportunities for manufacturing sector to accelerate exports and ease of doing business, said Ms Sumita Dawra.
Currently, these 75 potential products contribute around USD 127 billion, which is around 46% of the total exports from India, said Sanjay Aggarwal.
At the global level, these 75 products also have significant 21% presence in the total global exports, whereas India’s share of these 75 products currently is only 3.6%, said Sanjay Aggarwal.
The focus on these 75 potential products would create ease of doing business, enhanced production possibilities, linkages with global value chains, innovative technologies to create economies of scale in production to become more and more competitive in global markets, said Sanjay Aggarwal.
The study has found high trade to GDP correlation for India at 0.94 as well as high export to GDP correlation at 0.95. This indicate as export grows, the economic growth trajectory becomes strong and sustainable, said Sanjay Aggarwal.
The economies such as UAE, Germany, China, Singapore, USA and UK also hold a high degree of correlation of trade to GDP and exports to GDP of more than 0.9, said Sanjay Aggarwal.
The growth prospects of India’s top 25 export destinations are bright with their average GDP growth projections estimated to be 4.1% (average) for 2021. This indicates that the target set for USD 400 billion in 2021-22 is very much realistic and achievable, said Sanjay Aggarwal.
Going ahead, the policy reforms such as flexible labour laws, enhanced participation of women in labour force, improved ease of doing business, particularly for MSMEs along with the reduced cost of doing business, such as costs of capital, costs of power, costs of logistics, costs of land and availability of land, costs of compliances and cost of labour, would go a long way to enhance and increase the export growth trajectory and to achieve USD 750 billion goods export target by 2027, said Sanjay Aggarwal.
Speaking at the Technical Session on ‘High Potential Products and High Potential Markets’, Prof (Dr.) Ram Upendra Das, Head, Centre for Regional Trade, said that it is important to analyse the existing market where India has already duty preferences and zero duty regime. Exporters may take the advantage of these duty preferences. He opined that the considerable information gap among the private players needs to be fulfilled in terms of knowledge of rules of origins and other technical aspects.
Other Technical Sessions on ‘Export Policies and Procedures for enhancing growth trajectory of Indian Exports’ and ‘Logistics Requirements for Enhancing and Increasing Exports’ were chaired by Shri Sanjay Beswal, Co- Chair, Foreign Trade and Investment Committee, PHD Chamber and Shri Vipin Vohra, Co-Chair, Logistics Management Committee, PHD Chamber, respectively.
Full report on Achieving a higher exports growth trajectory: 75 potential products and markets is enclosed.
PHD Chamber of Commerce and Industry