Emerging sectors to support US$ 1 tn goods export target
The electronics, renewable energy, IT hardware, and electric vehicle industries will play a crucial role in India achieving its target of $1 trillion worth of merchandise exports by 2030.
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According to Santosh Kumar Sarangi, Director General of Foreign Trade, the new and emerging industries like electronics, renewable energy, IT hardware, and electric vehicles, will be crucial for India to achieve the target of US$1 trillion worth of merchandise exports by 2030.
In the second round of the Production Linked Incentive (PLI) scheme for IT hardware, the government has approved 27 applications for manufacturing the products domestically. Prominent companies in the industry, including Dell, HP, Lenovo, Asus, and Acer, are among the applicants. IT is expected to become a high-export commodity in future once PLI gets functioning.
India exported US$10.9 billion worth of smartphones in FY 23. The smartphone exports reached US$5.6 billion in April–August this year, an increase of 88.9% over the same period last year.
A lot of manufacturing in the country is taking place in the renewable energy sector. It is anticipated that over time, India will export more products from the sector.
Mr. Sarangi said “Our EV industry is picking up quite well. The auto industry in India is experimenting big time on EVs and are coming up with models which will be accepted in the global marketplace and those are the segments that are going to grow.”
He explained that other components of the action plan included promoting Ease of Doing Business, the administrative work of running different schemes, and doing a lot more PLI to ensure improvement in manufacturing competitiveness.
The government is also working on other sectors. Shifting of focus on commodities like tea, coffee, marine products and even food grains may also increase realizations on shipments.
India exported goods and services worth US$ 776 billion in 2022–2023, of which US$453 billion were goods exports.