Commerce Ministry Urges Exporters to Target Key Sectors and Markets for Export Boost

The Commerce Ministry has called upon exporters to prioritize key sectors, including food, electronics, and engineering, as well as focus on 12 major markets, in a bid to strengthen India's export performance.

The ministry encourages the organization of global-scale fairs and exhibitions to showcase Indian products and services. These recommendations were discussed during a meeting chaired by Commerce and Industry Minister Piyush Goyal, aiming to address the challenges faced by India's export sector.

Focus on Potential Sectors and Global Markets

The Commerce Ministry highlighted six sectors that hold significant potential for driving India's exports. These sectors include food, textiles, engineering, electricals and electronics, medical devices, pharmaceuticals, and auto components.

By directing efforts towards these sectors, the ministry aims to tap into their respective export capabilities and boost India's overall export performance.

Additionally, the ministry identified 12 major global markets as key destinations for promoting exports. These markets encompass the United States, United Kingdom, Brazil, Germany, Saudi Arabia, Sweden, Taiwan, South Korea, Japan, and Russia. By targeting these markets, Indian exporters can capitalize on the existing demand and explore new avenues for export growth.

Emphasis on Fairs, Exhibitions, and Trade Integration

To facilitate greater exposure for Indian exporters, the Commerce Ministry emphasized the importance of organizing fairs and exhibitions on a global scale. These events provide platforms for Indian businesses to showcase their products and services, connect with international buyers, and explore potential trade partnerships. By actively participating in such events, exporters can enhance their visibility and attract business opportunities from diverse markets.

The meeting also recognized the significance of trade integration and investments in promoting exports. The integration of Indian businesses with global value chains through increased investments can lead to enhanced trade opportunities. The ministry encouraged exporters to forge strategic partnerships and collaborations with international counterparts, enabling them to leverage mutual strengths and expand their reach in global markets.

Addressing Export Challenges

The meeting chaired by Commerce and Industry Minister Piyush Goyal assumes significance as India's merchandise exports have witnessed a contraction over the past four months. The slowdown in global markets has adversely affected export demand, leading to concerns among exporters. Additionally, economic uncertainties and geopolitical factors such as the Russia-Ukraine war have further impacted India's export performance.

Collaboration with Export Promotion Councils and Industry Associations

To gain insights and inputs from relevant industry stakeholders, the meeting included representatives from export promotion councils representing sectors such as apparel and medical devices. The Federation of Indian Export Organisations (FIEO) and industry associations also actively participated in the discussions, contributing their perspectives and expertise.

Trade Strategy and Targeted Countries

Last month, Commerce Secretary Suni Barthwal announced that the Ministry of Commerce was formulating a comprehensive trade strategy to promote exports. As part of this strategy, the Department of Commerce, the Department for Promotion of Industry and Internal Trade (DPIIT), Invest India, and Indian missions abroad will focus on 40 countries. These countries, including the United States and European Union nations, account for 85 percent of India's total exports.

Here are some relevant and latest facts of the news:

• The meeting between the commerce ministry and exporters took place on Monday, June 13, 2023.

• The six sectors that were identified as having huge potential to increase India's exports are food, textiles, engineering, electricals and electronics, medical devices, pharma, and auto components.

• The 12 major markets where exports could be promoted further are the US, UK, Brazil, Germany, Saudi Arabia, Sweden, Taiwan, Korea, Japan, and Russia.

• Exports from India have been contracting for the last four months due to demand slowdown in the global markets.

• In May 2023, exports declined by 10.3% year-on-year to USD 34.98 billion.

• Cumulatively, exports during April-May 2023 contracted by 11.41% to USD 69.72 billion.

• The demand slowdown in major markets is being attributed to factors such as high inflation in developed economies and the Russia-Ukraine war.

• The commerce ministry is working on a trade strategy to promote exports.

• As part of this strategy, the Department of Commerce, Department for Promotion of Industry and Internal Trade (DPIIT), Invest India, and Indian missions abroad would focus on 40 countries.

• These countries, including the US and European Union nations, account for 85% of India's total exports.

Conclusion:

The Commerce Ministry's call for exporters to concentrate on key sectors and major markets, along with its emphasis on organizing fairs and exhibitions, reflects a proactive approach to boost India's exports.

By aligning efforts with potential sectors and expanding market reach, Indian exporters can navigate challenges and leverage opportunities for sustainable export growth.

The collaboration between the government, export promotion councils, and industry associations signifies a collective effort to support and promote India's export sector.