New FTAs, cost reduction in power, logistics to help boost exports: PHDCCI

NEW DELHI: Measures like comprehensive trade pacts, reduction in cost of capital, power, and land reforms will help boost India’s exports of goods and services to USD 2 trillion by 2030, an industry chamber report said on Thursday.

The PHDCCI’s report also recommended schemes for 75 potential export products including marine items, iron ore, some chemicals, pharma, cotton, aluminium, and tankers to promote shipments.

“The 75 products have been identified from nine most promising sectors. These products contribute around USD 222 billion, which is around 50 per cent of India’s total exports. At the global level, these 75 products have significant presence in world exports, whereas India’s share of these products is only 6 per cent of the total world exports,” it said.

The report - India’s Emerging Export Dynamics: Vision USD 2 Trillion Exports by 2030. - added that India’s service exports have traditionally been concentrated in North America and Europe, but growing continents like Asia, Africa, and Latin America also offer plenty of scope for the

growth.

“New free trade agreement should be comprehensive as it will expand and offer diversification as India has a comparative advantage in the service sector,” the report said adding such pacts will offer a more balanced opportunity for the country’s competitive services sector.

It said that a cut in repo rate will lower the lending rates which will reduce the cost of capital for the businesses leading to an increase in domestic demand and enhancing the competitiveness of producers in the domestic market and exporters in the

international market.