India’s exports hit a record high of $422 billion in 2021-22, but an imminent recession in key western markets and the geopolitical crisis caused by the war between Russia and Ukraine have pushed the country’s exports down. touted as a factor likely to influence the growth of But Sahay, who heads his FIEO, India’s top export promotion organization, believes India will not be greatly affected by the global economic slowdown, but it will not be completely shut off. .
Sahai was speaking with ET India Rising with Miloni Bhatt, Digital Broadcast Editor at economictimes.com. Some of India’s most influential decision makers share their perspectives and insights on the challenges, opportunities and trends that define India’s rise to global economic power. , underpinned by her three main pillars of the economy: digital financial services, small businesses and transportation infrastructure.
Watch the full ET India Rising interview with Dr. Ajay Sahai
ET India Rising: FIEO’s Dr Ajay Sahai outlines India’s blueprint to boost exports
India aims to increase exports’ share of global trade by 2047, but the country’s roadmap to boost exports, especially in the face of global headwinds in a challenging macro environment. In ET India Rising, powered by Visa, Dr Ajay Sahai, Executive Director and CEO, Federation of Indian Export Organizations (FIEO) outlines India’s blueprint for boosting exports. , delves into India’s policy push from three fronts: the AtmaNirbhar Bharat scheme, the Production Linked Incentives (PLI) scheme, and the new push for free trade agreements (FTAs). Sahai was speaking with ET India on his Rising multimedia interview series, Miloni, his broadcast editor at economictimes.com Digital He Batt. An influential decision maker and leader defines India’s rise as a global economic powerhouse underpinned by his three key economic pillars: financial services, SMEs, infrastructure and manufacturing, the challenge share perspectives and insights on , opportunities and trends. Redrawing India’s priorities in manufacturing, MSMEs, logistics and transportation, enabling a seamless transition and enhancing India’s participation in the global value chain.
“There are some good things that India will bring in 2023 that will help India stay on a growth trajectory as far as exports are concerned. Secondly, the Production Linked Incentives (PLI) scheme is expected to lead to an increase in production as new sectors are added to it. We see further integration into the value chain.” Sahai said.
However, although India is the world’s second most populous and fifth largest economy, it lags behind in world trade with a 2.91% share of the World Bank and a 2.44% share of the IMF. In fact, India aims to increase its share of exports in world trade to 3% by 2027 and 10% by 2047. “India 100”.
“One of the major issues in India’s exports is the structural nature of its exports. We are targeting a market that accounts for only 30% of world imports.” Sahai gave examples of the electrical and electronic machinery and automotive segments, which together account for 35% of global imports, worth more than $6.7 trillion, he said.
“In this segment, our share is less than 1%. And we have a tremendous opportunity. That is why we have high hopes for the PLI scheme: we are looking to increase our share of exports to 3% by 2026 and 5% by 2030, respectively.” In 2020, Federal Finance Minister Nirmala Sitharaman announced spending of Rs. He has invested Rs 1.97 crore in the PLI scheme across 14 major sectors including automotive, electronics and technology products to produce an additional Rs 30 crore by 2025 as well as create national manufacturing champions and Create new jobs for rupees.
“So far, the results of the PLI scheme have been very encouraging for mobile phones. Today we are a net exporter of mobile phones. are also decreasing.” Sahai said. For example, India’s mobile phone exports last year amounted to about $7.7 billion. This year in India it is expected to grow from about $9 billion to he $10 billion.
In addition to a clear change in India’s FTA strategy and expected signatures with the UK, Canada, Israel and the Gulf Cooperation Council (GCC), recent FTAs signed with markets such as the UAE and Australia have It will not only open new markets for 100,000 exporters, but also help boost foreign direct investment (FDI) as global companies increasingly look to India as a global source of supply, Sahay said.
“As far as FTAs are concerned, I think there has been a very clear shift in our FTA strategy. Today we are more focused on countries with complementary economies and key markets. One of the big criticisms is that we have FTAs with countries whose imports are growing faster than their exports, but that trend has now reversed and I think this is a very positive sign.” added Sahai.
Going forward, as India becomes more integrated into global chains, boosted by the China +1 policy adopted by Western markets, Indian exporters will need to be aware of the labor and environmental requirements of importing countries and to meet them. must act proactively. Sahai said.
He conceded that strengthening India’s labor and environmental standards would go a long way in boosting the country’s exports in the next decade or so.
Over the next 12 months, ET India Rising, presented by Visa, will bring you in-depth conversations with key decision makers. They will share insights on how India can accelerate growth on three fundamental pillars essential to realizing its vision. India is set to become the world’s largest economy by 2050. You can follow ET India Rising’s multimedia video and text coverage on Economic Times digital platforms including ET Digital, ET India Rising’s dedicated digital content hub, ET YouTube channel and ET Social Platforms. on TV for ET NOW. It has also been published in the Economic Times.
