India’s overall exports combining merchandise goods and services have, on Tuesday crossed $750 billion, overriding extremely challenging global economic situation marked by global recession, all time high inflation for most developed countries and rising interest rates. Exports have risen from $500 billion in financial year 2020-21 as a culmination of healthy growth in both merchandise and service sectors, focus over the last 9 years on building foundation blocks for uninterrupted and sustainable economic growth and making India self-reliant by opening its doors wide rather than without closing them, Commerce & Industry Ministry Piyush Goyal informed India Inc. in his keynote address at the ASSOCHAM Annual Session 2023.
The Minister highlighted India’s strong macro economy, robust foreign exchange reserves, relatively low inflation and entrepreneurial spirit as the factors behind successfully bringing together the domestic ecosystem to not only replace items from the import basket but achieve economies of scale and compete in the international market. The speed, quality and extensive stakeholder consultations in India’s free trade agreements (FTA) have resulted in finding the right equitable balance. With the domestic market growing steadily, the Government’s effort to make India self-reliance is directed at further opening the country’s doors with the objective of letting competitive and comparative advantages determine international trade. The Minister wants policymakers to look at the entire value chain to find out the industries or sectors in which India is most cost competitive, has an edge over others and push for the growth of such industries or sectors.
Goyal also noted the role of infrastructure development initiatives like national infrastructure pipeline, PM Gati Shakti and Unified Logistics Interface platform built upon technology, in India’s export growth. The main challenge in Indian industry, trade and business is the high cost of logistics, according to Nitin Gadkari, Minister of Road Transport and Highways who detailed some key national highway projects being undertaken to address these constraints. According to Gadkari, after completion of the Delhi-Mumbai expressway, people can travel between Delhi and Mumbai in just 12 hours, Nagpur Mumbai in 5 hours and Nagpur Pune in 6 hours. This will help reduce the logistics cost.
Goyal identified renewable energy sector as one such area where India can become the global leader by exploiting the huge export potential and also promote the production of goods and services with least carbon impact. India has achieved two significant milestones in the field of renewable energy and carbon emission reduction, as pointed out by Minister of Environment and Forest Bhupender Yadav at the Assocham annual session. Nine years ago, India had set a target of achieving 165 gigawatts in renewable energy production and reducing carbon emission intensity by 40 per cent by 2030, which has been successfully accomplished. India has also increased carbon sink from 2.5 per cent to 33 per cent through increase in forests cover.