Department of Commerce taking concrete steps to grow exports and provide jobs
The Minister for Commerce & Industry Mr. Suresh Prabhu recently said India is keen to grow exports and provide more jobs for the young, talented, well-educated and even semi-skilled and unskilled workforce of India. Export and import-related activities are governed by the Foreign Trade Policy (FTP), which comes directly under Ministry of Commerce & Industry and whose policies are aimed at enhancing India’s exports and use trade expansion as an effective instrument of economic growth and employment generation.
All figures show that despite world-wide slump, India’s economy is still showing signs of growth, so much so that in near future the Indian economy is likely to overtake the economies of two more countries up the ladder. India today is seen as one of the most important players in the global economic landscape. Its trade policies, government reforms and inherent economic strengths have attributed to its standing as one of the most sought after destinations for FDI flows.
Infrastructural and technological developments, taking place all over the country is a good sign for the trade and economic sector in the future, and is helping in pushing FDI to the country.
The positive growth has been possible due to acceleration in the past two decades of the process of integration of the domestic economy through the twin channels of trade and capital flows which has resulted in India’s GDP reaching Rs. 167.73 trillion (US$2.30 trillion) in 2017-18. India’s foreign exchange reserves were US$ 400.49 billion in the week up to September 14, 2018, according to data from the RBI. The per capital income too has nearly trebled during these years.
Growth in GDP as well as expansion in per capita income has been led by India’s trade and external sector with exports from the country recording their highest growth in 2017-18. Total exports from India (Merchandise and Services) increased 17.38 % year-on-year during April-September 2018 to US$ 265.39 billion, while total imports increased by 19.41% year-on-year to US$321.40 billion according to the data from the Ministry of Commerce & Industry. TPCI is proud that it is contributing through its own small manner in taking India’s trade & commerce to new heights.
Trade pundits opine India’s exports are expected to reach US$750 billion by 2018-19. Forthcoming FTP is going to play a significant part in taking exports to new heights. Also, with the Government of India striking important deals with the governments of Japan, Australia and China, the external sector is increasing its contribution to the economic developing of the country and growth in the global markets. Moreover, by implementing the FTP 2014-19 by 2020, India’s share in world trade is expected to double from the present level of 3% in the light of growth in global trade, which is expected to grow at 4% in 2018 from 2.4% in 2016.
As part of the FTP strategy of market expansion, India has signed a Comprehensive Economic Partnership Agreement (CEPA) with South Africa which will provide enhanced market access to Indian exports. To upgrade export sector infrastructure, ‘Towns of Export Excellence’ and units located therein will be granted additional focused support and incentives.
All these are creating a positive impact on India’s position as global power. Resultantly, in August 2018, the US has upgraded India’s status as a trading partner on par with its North Atlantic Treaty Organization (NATO) allies.
In line with Mr. Suresh Prabhu’s announcement, Ministry of Commerce & Industry is taking several steps to give a further flip to India’s export. Department of Commerce is expected to announce an interest subsidy scheme for exporters in order to boost exports and explore new markets.
Increased support for export of various products has been announced and some additional items have been included under the Merchandise Exports from India Scheme (MEIS) in order to help exporters to overcome the challenges faced by them.
The Central Board of Excise and Customs (CBEC) has developed an ‘integrated declaration’ process leading to the creation of a single window which will provide the importers and exporters a single point interface for customs clearance of import and export goods.
RBI too has moved ahead by simplifying the rules for credit to exporters, through which they can now get long-term advance from banks for up to 10 years to service their contracts. This measure will help exporters get into long-term contracts while aiding the overall export performance.