After a much challenging time, Indian exports are finally making a significant recovery. As per reports, exports in the nation are likely to close the first half of the present financial year at around $195 billion, which is a significant achievement.
Union Commerce and industry minister Piyush Goyal believes that exports are on course to reach the $400-billion target this year and a series of measures announced in recent months will pave the way for stronger growth.
In 2020, with the outbreak of the pandemic, several logistical challenges surfaced, putting businesses in a tough spot.
With the onset of COVID restrictions, shortage of containers and higher shipping rates, the exporters of our country seemed to be in murky waters, as they sought for some immediate aid from the government.
However, through constant efforts made by the private sector and quick yet effective reforms from the government, Indian exports have overcome all adversities and stood true to their potential.
“Challenges are a part of doing business. Our exporters have done some wonderful work, despite the challenges of Covid, despite the shortage of container facilities and high shipping rates. The government has sought to provide as much support as it can through a series of measures. It’s a holistic effort of the government, the private sector, and our diplomats,” Mr Goyal said in a media interaction.
To be on stable ground, the major initiative taken was that of deepening overseas shipping lines and initiate shipbuilding in India. This brings the nation at par with the global competitive business.
Currently, ships are taking very long in certain countries, containers are stuck in some countries and some of them have irrational rules around Covid testing. All of this has caused a shortage.
“While this is temporary. In the long run, it would be very desirable to have more Indian shipping companies and I would encourage businesspersons and corporates in India to consider entering this business. Concor has issued some trial orders to start manufacturing in India and some 34 companies have expressed interest”, Goyal says.
Further, he highlights that Indian businesses and exports need to focus on strengthening production capabilities, in making recognized as a quality producer and focusing on quality and productivity.
In regards to the same, the government is continuously engaged in strengthening Indian industry through “ease of doing business” for improving the business environment and attracting foreign investments.
To make domestic manufacturing globally competitive and to create global champions in manufacturing, Production-Linked Incentive (PLI) Schemes in 13 sectors are being implemented. The Centre has initiated a review of some of the existing Free Trade Agreements (FTAs) to maximise its export potential to benefit the domestic industry as well as to make them more user-friendly, simple, and trade facilitative. In addition, bilateral trade negotiations have been initiated with a number of countries.