With Indian exports on a downslide as demand from key markets continues to shrink, the government is working on a multi-pronged export strategy that will focus on export promotion in about a dozen countries to begin with, including the US, the UK, the UAE, and Russia and push about eight commodity groups, by holding exhibitions and road-shows. It will also work simultaneously on promoting domestic manufacturing with an eye on exports, said senior officials.
“There are about 40 countries, out of the roughly 200 countries that India trades with, that account for 85 per cent of the country’s exports. Concentrating on these countries can lead to a more focussed approach towards export promotion. We are working out trade and investment strategy to promote exports focussing on 12 countries in the first phase,” per an official tracking the matter.
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The focus countries of the first phase also include Brazil, Canada, Saudi Arabia, Germany, Sweden, Japan, Taiwan, and South Korea.
The commodities that are to be promoted in the initial phase include auto, medical devices, pharmaceuticals, textiles, food processing, tourism, electrical items, the source added.
The territorial divisions of the Department for Promotion of Investment and Internal Trade (DPIIT) and the Commerce Department, together with Invest India and Indian Missions, are working on organising road shows, exhibitions and buyer-seller meets in the 12 identified countries, said the source.
Fall in demand
India’s goods exports fell for the fourth straight month by 10.3 per cent (year-on-year) in May 2023 to $34.98 billion, as demand in key markets such as China, the US and the EU declined.
“Since demand in most of India’s major markets is down, the government hopes to grab a bigger share of the identified markets, which hold a potential for growth, through various promotional measures,” the source added.
The Commerce Department has also identified major conferences that will be held over the next 5-6 months in India, such as the World Spice Congress and World Food Show, which will also have reverse buyer-seller meets, Commerce Secretary Sunil Barthwal recently pointed out in a media interaction. Earlier they were small in size, but this time they will be bigger with more buyer-seller meets, he said.
The DPIIT and Department of Commerce are working together in building synergies between domestic manufacturing and exports, said Barthwal. “What we are emphasising on is ‘make in India’ and ‘make for the world’. Whatever we are making in India should not be just focussed towards domestic consumption, but should also have export-orientation. We are looking at how to forge an alliance in terms of investment and trade,” he said.