India : Deepening its ties with the Global Economy

Posted by Daily Shipping Times on 12-10-2017        Tweet

India’s target to achieve exports worth US $900 billion by 2020 – David Rasquinha, Export-Import Bank

World is witnessing curious tale of rising protectionism – Dr Anish Shah, Mahindra and Mahindra

MUMBAI: In recent years, India’s robust growth has been driven by the dynamic private sector. An encouraging phenomenon that has been witnessed has been the emergence of a large number of investment driven by small and medium enterprises with immense potential for growth.

Trade is increasingly becoming an important part of the Economy and as a percentage of GDP from 2014-16 stood at 22.4 percent mentioned Dr Anish Shah, Chairman, CII WR Sub-Committee on International Trade and Investment & Group President – Strategy, Mahindra Group speaking at CII Conference on Global Trade Scenario held in Mumbai. “What we are witnessing today is a curious tale of rising protectionism. Most of which is emanating from the West, once regarded as the vanguard of free trade. The reasons for this may be many fold. Some of it internal, some of it external. But the end result is the rising rhetoric is that of less free trade” added Dr Shah.

India has consistently over the past two decades opened itself to the global economy, relaxed its once stringent laws. Opened up more sectors to foreign investment and equity and the result is for all to see. India has been one of the fastest growing economies in the world and the sustained economic growth has lifted us into a middle income economy and per capita GDP is expected to double every ten years.

During the inaugural session, Mr David Rasquinha, Managing Director, Export – Import Bank of India in his special address indicated that “India has set an ambitious target of achieving exports worth US $ 900 billion by 2020. In the current global macroeconomic scenario, while it seems like a challenging task, concerted efforts would need to be made for India to be able to achieve its trade target and realign its foreign trade policy with the new global trading system”.

There is a need for India to focus on expanding production capacity along with value addition, and moving up the value chain, while creating an enabling environment to account for a sizeable share in major leading global exports.

A demand-based export basket diversification approach is needed to further fuel exports growth. There is a need to focus on items where world demand has not only remained resilient but has shown dynamism, and where Indian exporters have some basic level of competence. There is need for identifying and aligning India’s export capability vis-a-vis global import demand, added Mr Rasquinha.

Concluding the inaugural session, Dr V. Rangaraj, Member, CII WR Sub-Committee on International Trade and Investment reiterated that to begin the process of realignment of India’s exports we have to first understand succinctly where our comparative advantages lie and how we can build our competencies in other areas. He also spoke about the power-packed sessions planned during the day which will cover the topics of - Future of MSME Exporters, Accessing Financial Support to drive Exports, Evolution of International Arbitration in India, India's Logistics & Infrastructure: Barrier to Assistance and the Exclusive session on Regulatory Perspective in Export.

The Country has taken great strides in opening up its economy and also increasing market access for its industries. To increase our exports in both merchandise and services trade, we have to work together with the Government and relevant stakeholders to address the pertinent and contingent issues and develop a framework to comprehensively resolve them.