An official said the commerce ministry has convened a meeting of exporters on Monday to take stock of the situation as outbound exports have been coming down for the past four months. Exporters are expected to highlight issues such as providing more support to participate in global exhibitions and fairs; expediting negotiations to conclude free trade agreements with the UK, Canada, Israel and the GCC (Gulf Cooperation Council); and allowing industry to double cut the salaries of professionals to retain talent in India.
According to the ministry data, exports declined 10.3 per cent year-on-year for the fourth consecutive month to USD 34.98 billion in May, while the trade deficit widened to a five-month high of USD 22.12 billion.
Cumulatively, exports declined by 11.41 per cent to US$ 69.72 billion during April-May in the current fiscal, while imports declined by 10.24 per cent to US$ 107 billion.
Sluggish demand in key markets, high inflation in advanced economies and the Russia-Ukraine war are taking a toll on the country's exports.
Apparel Export Promotion Council (AEPC) chairman Naren Goenka said more support measures from the government such as participation in global exhibitions would help boost exports.
FIEO Director General Ajay Sahay said that the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme will also help boost exports by providing benefits to advance authorisation, special economic zones and export-oriented units.
When asked about ways to boost shipments, Sanjay Budhia, Chairman - CII National Committee on Exim and MD - Patton Group, said that in view of the global recessionary trend, a strategic approach is needed to encourage exports. Needed.
"Resolving the specific issues faced by exporters, especially related to non-tariff barriers affecting supplies in critical markets, should be the primary focus," Budhia said. The pandemic has led to a rethink of strategies for sourcing, diversification of supply routes and manufacturing.
He said promoting technology upgradation and innovation in manufacturing processes would also help improve the quality and competitiveness of Indian products, leading to higher exports.
Budhia also said that the focus should be on skill development initiatives to enhance the capabilities of the workforce, especially in sectors with export potential.
"Support should be provided to encourage research and development for modernization of manufacturing processes, skill development, promotion of sustainable practices and enhancing the competitiveness of sectors such as pharmaceuticals, chemicals, textiles and auto and auto components," he added.
He said that the focus should also be on boosting quality standards and streamlining regulatory procedures, this could also help India increase its exports in the agriculture and food processing sectors.
India is already an agricultural powerhouse with a wide variety of food products, and this should be reflected in its exports.
He suggested that India should also set up a trade promotion body with dedicated offices abroad to provide branding and promotional activities as well as marketing services to Indian exporters.
He said, this body will help in the areas of trade facilitation, capacity building and awareness generation and help in achieving the desired target of USD 2 trillion by 2030 and making India a global economic superpower.
In addition, he suggested facilitation centers for free trade agreements as they would become one-stop points of information on all FTAs by India and would aim to reach exporters to developing markets in FTA-partner countries.
Budhia said, “These centers will facilitate better understanding of the provisions of FTAs in goods, services and investment and can help Indian industry to make better use of existing FTAs and benefit from preferential liberalization through capacity building programmes.” Are." ,
He said investment in expansion of cold chain network could open up export opportunities for sectors like agriculture, horticulture and pharmaceuticals.
The official said representatives of export bodies including Federation of Indian Export Organizations (FIEO), Apparel Export Promotion Council and Leather Export Council are likely to attend the meeting.
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