PR No – 10
23rd November, 2023
New Delhi
India’s Exports most resilient among the top 20 leading exporters: PHD Chamber
Industry body moots strategy for achieving USD 2 trillion exports by 2030
India’s resilience of exports has increased significantly in the post covid years; the growth of exports during 2021 and 2022 at 20% and 9.7% respectively was the highest among the top 20 leading exporters says a research report prepared by PHD Research Bureau, PHD Chamber of Commerce and Industry, on India’s Emerging Export Dynamics: Vision USD 2 Trillion Exports by 2030.
The dynamic policy environment provided by the government along with efforts of the exporters to connect with global value chains have enhanced the export volumes, said Mr. Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry, in the press statement issued here today.
After a strong rebound from the depths of the COVID-19 pandemic, the pace of exports was slowing during the past few months, however, exports of goods and services are showing signs of significant revival after a brief spell of slowdown as October 2023 exports picked up by 9%, said Mr. Agarwal
During the past ten years, exports have accelerated significantly, rising from USD 375 billion in FY 2011 to USD 770 billion in FY 2023, he said.
The launch of India’s new Foreign Trade Policy (FTP) 2023 with its five key elements of Duration, Dynamism, Decentralisation, Direction and Disaster proofing, is aimed at creating an enabling ecosystem for exporters. It shall bolster India’s export quantum while considering the size of the Indian economy and its manufacturing and service sector base, said Dr. Ranjeet Mehta, Executive Director, PHD Chamber of Commerce and Industry.
The FTP 2023 aims to increase India’s competitiveness in the global markets by promoting and developing each state to be able to integrate with the global trade which is a move in line with India’s vision of becoming “Atmanirbhar” (self-reliant), said Dr. Ranjeet Mehta.
The emerging high growth destinations such as Togo, Netherlands, Brazil, Israel, Indonesia, Turkey, Australia, South Africa, Saudi Arabia and Belgium and high growth export commodities such as Sugar and confectionary, Mineral fuel and oils, aluminum and articles, inorganic chemicals, ships, boats and floating structure, rubber and articles and optical, photographic, medical apparatus would enhance India’s export growth to new highs, said Dr. Mehta.
The top 10 highly growing export destinations have shown a consistent growth during the last five years (FY 2019 to FY 2023 average) including Togo (73%), the Netherlands (36%), Brazil (28%), Israel (27%), Indonesia (24%), Turkey (22%), Australia (20%), South Africa (19%), Saudi Arabia (16%) and Belgium (13%), said the report.
Exports to these countries have grown at high growth rate amidst the global economic slowdown. These countries are emerging major growth destinations for India’s exports though the volumes have to pick up more significantly in the coming times, said Mr. Sanjeev Agrawal.
The top 10 highly growing export commodities have shown a consistent high growth during the last five years (FY 2019 to FY 2023 average) including Sugar and confectionary (43%), Mineral fuel and oils (36%), Electrical machinery and parts (27%), aluminum and articles (18%), inorganic chemicals, precious and rare- earth metals (16%) miscellaneous chemical products (16%), Cereals (14%), iron and steel (12%), ships, boats and floating structures (11%), rubber and articles (11%) and optical, photographic, medical apparatus (10%), the research report said.
The high growth-high volume export commodities have significant potential to enhance India’s exports growth to new highs, said Mr. Agrawal.
The industry body had identified 75 products on the basis of six digit Harmonised system (HS code), these 75 commodities account for about 50 percent of India’s total exports for the FY 2023, suggesting that these commodities have a great potential to propel India’s exports. Nonetheless, India can scale up exports of these commodities exploring the massive untapped potential in the global markets, since they make up only 6% of global exports. These 75 products exports are USD 222 billion in the world exports of USD 3838 billion, said Dr. SP Sharma, Chief Economist, PHD Chamber of Commerce and Industry.
These 75 products grew at 11% in 2022-23 as compared with 6% growth of India’s total merchandise exports in 2022-23, said Dr. SP Sharma.
The growth of services during the last two years at 24% (average) is commendable as our services have shown a great resilience and price competitiveness in the global markets. The growth of services exports will also be a major growth driver to achieve the ambitious targets of USD 2 trillion exports by 2030, said Dr. Sharma.
Going forward, ease of doing exports with calibrated reforms by the government will be crucial to achieve the target of USD 2 trillion by 2030, said Mr. Sanjeev Agrawal.
We need to focus on reducing the cost of business and increase the ease of doing business to enhance the competitiveness of the domestic manufacturing. The Government should focus on reducing the cost of doing business including- Costs of capital, Cost of Power/ energy, Cost of Land and Availability of Land, Cost of Logistics, Cost of Labor, said Mr. Sanjeev Agrawal.
There is significant potential to increase exports by exploring new Free Trade Agreements (FTAs) with the EU and the UK. There exist significant complementarities between, India-EU and India-UK. New FTA will increase India’s participation in the global value chains, said Mr. Sanjeev Agrawal.
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Warm Regards,
Media Division
PHD Chamber of Commerce and Industry