The Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and textiles, Shri Piyush Goyal said that India will achieve 2 trillion export target by 2030.
The Minister was speaking at the Exporters Conclave held in Chennai on October 16, 2022 organised by FIEO & O/o.DGFT in the context current geo political scenario to discuss the issues and the way forwards to keep the growth momentum. The session was participated by large number of leading exporters from Tamil Nadu comprising various sectors of exports.
India recorded new milestones in goods & services exports in the last fiscal clocking US$ 422 bn in merchandise sectors and US$ 254 Bn in services exports. 50% of the incremental GDP in 2021-22 was contributed by the exports sector. As stated by the Hon’ble Prime Minister, exports play a key role in transition of a country from a developing to a developed status, we have to push our exports so as to be in the comity of developed countries. Despite global headwinds, Indian exports have done reasonably well clocking 15% growth in the first six months of the current fiscal.
At the meeting, the Minister emphasised on sustaining the export momentum and said that he is confidence that Indian exports will be able to wither the global headwinds and will surpass growth in exports by a big margin. While highlighting the growth of economy towards becoming developed nation, the Minister said that by 2047, country will become 30 trillion economy with 25% share in exports. By the year 2030, exports form India will be 2 trillion with 1 trillion product export with CAGR growth of 11 to 12% and 1 trillion service exports with CAGR of 18-19%.
The industry participants were assured that Government is committed to address the issues raised by them and many of the issues raised were resolved on the spot. The Commerce and Industry Minister urged the trade and industry to make all efforts to achieve higher export growth in this financial year.
Dr. A. Sakthivel, President, FIEO, in his welcome address, said that India is having very good opportunities for exports to Russia and the EU despite recessionary trends visible there and estimated that an additional export of US$ 8-10 bn to Russia in the next 12 months and US$ 15-20 bn to the EU can be exported. Russia’s principal exports, of the total exports of US$. However he highlighted the liquidity problems of the exporters and requested the Hon’ble Minister for introducing Exports Refinance Facility for banks so as to refinance them at Repo rate to the extent of credit extended to the export sector. The levy of GST on exports freight has further added to our liquidity woes and FIEO President requested for intervention of Hon’ble Minister for getting exemption from GST on exports freight. Looking into the rising interest rates, which have already crossed pre-covid level, Dr. Sakthivel said that the exporters are looking towards increasing interest subvention to 5% for MSMEs manufacturers and 3% to all in respect of 410 tariff lines.
He thanked Hon’ble Minister for agreeing to include Iron & Steel, Pharma and Chemical sectors under the RoDTEP Scheme which will impart further competitiveness to these sectors.
Dr. Shanmuga Sundaram, Development Commissioner, MEPZ SEZ, in his address, highlighted the export potentials of Tamil Nadu and as well as export form SEZ and said that the State is having highly developed industrial manufacturing eco system and one of the largest hub for production of automobile, textiles, leather, engineering, etc.
Exporters have flagged several issues related to the rising of cost of raw materials and subdued demand in certain key export markets and the need for more support to the exporters in this difficult time. Industry leaders requested for including left out sectors under RoDTEP and rationalisation of existing RoDTEP rates, exploring possibility for increased support under Interest Equalisation Scheme (IES) and under Market Access Initiative (MAI), and operationalisation of Production-Linked Incentive (PLI) Schemes for additional sectors.
Other issues discussed during the session includes need for higher subvention under the Interest Equalization Scheme both for manufacturer MSMEs and exporters of 410 tariff lines; Relief on Average Export Obligation under EPCG for Service Sector; Export benefit extension for export to Russia under Rupee payment; higher freight costs; withdrawal of 50% duty of export of law-grade Iron Ore; PLI scheme for Leather, Handloom, Auto parts, etc. NTBs faced by the exporters in EU, Japan, China, etc.