Govt focussing on nine sectors to boost export

Ministry of Commerce and Industry is targeting nine sectors, including pharmaceuticals, food processing and textiles, to drive export growth in the current fiscal year 2018-19, as per a report by the Press Trust of India, citing a government official. On October 1, Commerce and Industry Minister Suresh Prabhu led a meeting of inter-ministerial officials to discuss methods to drive export growth in gems and jewellery, textiles, leather, engineering products, electronics, security and defence, pharmaceuticals, agricultural commodity and marine products. The government is targeting a minimum export growth of 16 per cent through priority sector lending, improved promotions and infrastructure.

Under the plan, while the Ministry of Defence is aiming to boost defence exports from around US$675 million to US$4.7 billion, the Ministry of Electronics and Information Technology has suggested measures to attract companies that are shifting their manufacturing bases from China owing to high wages. Meanwhile, the Ministry of Chemicals and Fertilizers are looking at new countries for exports, while resolving delays in environmental clearances in the agro-chemical sector. The Government’s efforts to boost export by alleviating these concerns have led to a more than 14 per cent year-on-year growth in merchandise exports to US$82.5 Billion during the first quarter of fiscal 2018-19.

The plan to focus on the nine sectors comes as part of a broader strategy to double India’s exports by 2025. The Government, meanwhile, has also been seeking ways to tackle challenges on way of increasing export such as international trade uncertainty, difficulties in availability of credit, high logistics cost as well as productivity standards and qualities. Additionally, the Directorate General of Foreign Trade (DGFT), an unit of the Ministry of Commerce and Industry, has simplified procedures under the Merchandise Exports from India Scheme (MEIS) system to avail export incentives. India’s export growth so far has also been aided by India’s increasing command in global value chain setup.