India devises strategy to boost exports in 2023

Exports declined for the fourth-consecutive month by 10.3 per cent year-on-year to $34.98 billion in May, while the trade deficit widened to a five-month high of $22.12 billion, data released by the commerce ministry showed.

As India faces a slump in exports due to a global slowdown setting in, the commerce ministry said on June 15 that it was working on an ‘export strategy’ for 2023, aimed at boosting exports to identified countries. The ministry will look at the GDP growth and trade forecasts of the countries it approaches. “The export strategy will be based on the growth rates and trade prospects of a country. In a focused approach to boosting exports, a total of 40 countries have been identified,” Commerce Secretary Sunil Barathwal said on June 15, addressing reporters during the release of trade data for May.

Headwinds still continue on the global trade front due to recession and slowdown in many countries, he said, explaining the need for such a strategy.

Exports declined for the fourth-consecutive month by 10.3 per cent year-on-year to $34.98 billion in May, while the trade deficit widened to a five-month high of $22.12 billion, data released by the commerce ministry showed.

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

“These countries, including the US and European Union nations, account for 85 per cent of India’s exports. This way we will have a focused approach and be able to improve exports amid a slowing global economy.

“Whatever we are making in India should not focus only on domestic consumption but also try to make material that can be exported. This way, we would be able to keep our exports up,” the Barathwal said.

For this, the Invest India programme and the commerce ministry will work together to forge an alliance between the investment and trade bodies. In the first phase, the ministry would focus on 11 countries and 8-9 commodity groups.

They will also participate in some major exhibitions abroad, including in fairs like the World Food Show and World Spices Congress, where teams from these departments would conduct buyer-seller meets.

“We are talking about a twin strategy of export promotion and import substitution. Both industrial policy and trade policy would work in sync,” he added.