TRADE UPDATE #127

Expanding India’s Export Footprint

06/08/2021

India witnessed an export boom in July, taking the export number to US$ 35.2Bn, breaking all the previous records. The month’s statistics bode well with the government’s ambitious export target of US$ 400Bn for the current fiscal, out of which around 33% of the target has already been achieved, claim experts. To ensure the trade numbers remain high and India continues to expand its export footprint, PM Narendra Modi interacted with several key stakeholders so they can tap into their full potential and make the optimum use of resources to meet the growing global demand.

Speaking of export prospects, India aims to reach the pinnacle of US $1Tn exports (merchandise and services) by FY26 under the new foreign trade policy, which will be announced in October. However, policymakers feel that to fulfill this goal, there must be a substantial, sustained scaling up of exports that need to grow at a compounded annual growth rate (CAGR) of 15% from about 5% in the past five years. Moreover, to boost exports and encourage the ‘Make in India’ initiative, some top steel companies have come forward to build containers to abridge the container shortage crisis. We hope that the government formulates incentive schemes to encourage more players to get into this sector since there is already an abundance of raw materials in the nation.


ECONOMY

India’s exports hit a record $35.2 bn as demand revives

India exported goods worth a record $35.2 billion in July, signalling that the rapid economic recovery in key Western markets is increasing demand for Indian products.


POLICY

Stiff target: New Foreign Trade Policy aims for exports of $1 trillion by FY26

India will aim to more than double its annual goods and services exports to over $1 trillion by FY26 under the new foreign trade policy (FTP), as it seeks to tailor its policies suitably to cash in on an expected rebound in global economic growth, sources told FE.


INTERNATIONAL TRADE

Here’s who wins and who loses from the surge in commodity prices

The world’s recovery from the coronavirus pandemic has sent prices for energy, metals and food soaring, helping big commodity exporters while hammering those nations that buy the bulk of their raw materials from others.


ECONOMY

PM Modi to Interact with Heads of Indian Missions Abroad, Stakeholders of Trade, Commerce on Friday

Prime Minister Narendra Modi will interact with heads of Indian Missions abroad along with stakeholders of trade and commerce on Friday with a view to expand export potential and increase the country’s share in global trade, an official statement said. It added that exports have a huge employment generation potential, especially for MSMEs and labour-intensive sectors, with a cascading effect on the manufacturing sector and the overall economy.


COMMODITY

Indian seafood exports hit the Great Wall at Chinese ports

Inconsistencies in shipments to China, the second largest importer of Indian marine products, seem to have landed Indian seafood exporters in trouble, prompting them to focus on other overseas destinations to remain competitive.


OTHER NEWS

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