Ministry of Commerce Initiates Measures to Boost Exports through Sector-Focused Approach and Market Targeting
04-07-2023 : The Ministry of Commerce in India has taken measures to revitalize and boost the country’s exports by urging exporters to focus on specific sectors and target key international markets. In a meeting chaired by Commerce and Industry Minister Piyush Goyal, the government stressed the need for exporters to explore new opportunities and leverage potential markets to enhance export growth. This initiative comes in response to the decline in merchandise exports from India over the last four months.
The meeting identified six sectors with significant potential to drive the country’s exports: food, textiles, engineering, electricals and electronics, medical devices, pharma, and auto components. By directing exporters’ attention to these promising sectors, the government aims to foster innovation and competitiveness in these industries, ultimately driving higher export volumes.
Furthermore, the Commerce Ministry emphasized the importance of organizing international fairs and exhibitions as a means to showcase India’s products and capabilities on a global scale. Such events can provide valuable networking opportunities and exposure to international buyers, leading to increased export opportunities for Indian businesses.
In terms of specific international markets, the government highlighted 12 major destinations where exporters should concentrate their efforts. These markets include the United States, United Kingdom, Brazil, Germany, Saudi Arabia, Sweden, Taiwan, Korea, Japan, and Russia. By targeting these regions, exporters can tap into high-demand markets and establish stronger trade relations with potential partners and customers.
The urgency to boost exports arises from the recent decline in export figures. According to the Ministry’s data, exports experienced a year-on-year decline of 10.3 percent to USD 34.98 billion in May. This marks the fourth consecutive month of negative export growth, further raising concerns about the country’s trade performance. Additionally, the trade deficit widened to a five-month high of USD 22.12 billion during the same period.
Looking at cumulative figures for April-May of the fiscal year, exports witnessed a significant contraction of 11.41 percent to USD 69.72 billion, while imports also declined by 10.24 percent to USD 107 billion. The decline in exports can be attributed to various factors, including the demand slowdown in major international markets, high inflation in developed economies, and geopolitical tensions, such as the Russia-Ukraine conflict, which have impacted India’s trade dynamics.
To address these challenges, the government’s proactive approach in encouraging exporters to focus on specific sectors and target key markets is crucial. By promoting niche sectors with high growth potential, facilitating participation in international events, and strategically targeting major markets, Indian exporters can gain a competitive edge and regain momentum in global trade.
During the meeting, representatives from various export bodies, including the Federation of Indian Export Organisations (FIEO), the Apparel Export Promotion Council, and the Council for Leather Exports, were present. These organizations play a pivotal role in representing the interests of exporters and will likely collaborate with the government to execute export promotion strategies effectively.
