Emerging sectors to assist India’s exports reach US$ 1 trillion by 2030

These sectors include electronics, renewable energy, IT hardware, and electric vehicles

November 23, 2023

India exported US$ 10.9 billion worth of smartphones in FY23

The push for the US$ 1 trillion export target by 2030 also includes services exports of US$ 1 trillion

70 districts out of over 760 account for 80% of the country's total outbound shipments

In 2022-23, India's exports of goods and services totalled US$ 776 billion, with goods exports amounting to US$ 453 billion

India’s journey towards achieving a US$ 1 trillion merchandise export target by 2030 will hinge on new and emerging sectors such as electronics, renewable energy, IT hardware, and electric vehicles, according to Santosh Kumar Sarangi, Director General of Foreign Trade. 

Speaking at an industry event, Sarangi noted the significant rise in electronics exports, specifically smartphones, which have become the fifth-highest exported commodity. India exported US$ 10.9 billion worth of smartphones in FY23, marking a substantial increase from previous years.

The push for the US$ 1 trillion export target by 2030 includes services exports of US$ 1 trillion. The recent approval of 27 applications under the Production Linked Incentive (PLI) scheme for IT hardware, involving major brands like Dell, HP, Lenovo, Asus, and Acer, is expected to boost the export potential of the IT hardware sector. Sarangi emphasised that when the PLI scheme becomes operational, it will likely become a significant export commodity.

Sarangi highlighted the potential for India’s IT hardware sector to become part of the global value chain, similar to the success seen in smartphone exports. Additionally, sectors like solar panels, modules, and renewable energy, where manufacturing is gaining momentum in India, are expected to contribute significantly to exports. India’s electric vehicle (EV) industry is also on the rise, with the auto industry experimenting with EV models that can be accepted in the global marketplace.

While focusing on emerging sectors, the government conducts commodity-wise analyses to identify opportunities for export growth in existing sectors. Efforts to shift towards value addition in traditional sectors like tea, coffee, marine products, and food grains are expected to lead to higher realisations on shipments.

Sarangi emphasised the importance of administrative efforts to run various schemes, promote ease of doing business, and implement PLI initiatives to enhance manufacturing competitiveness. In parallel, the government is working on a sectoral level to provide greater market access, including through free trade agreements with countries such as the UAE and Australia, with negotiations ongoing with the UK and the European Union.

Sarangi also highlighted the vast opportunities for increasing exports from different districts, as currently, 70 districts out of over 760 account for 80% of the country’s total outbound shipments. In the financial year 2022-23, India’s exports of goods and services totalled US$ 776 billion, with goods exports amounting to US$ 453 billion.

Source: Financial Express

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