India Need To Reorient Its Trade Focus On Asia As Its Share In World Trade To Reach 60% By 2030: FISME

New Delhi, May 9 (KNN) As economic power continues to shift towards Asia, India is ramping up efforts to boost its exports and solidify its position as a major player in global trade.

New data projects that by 2030, Asia's share of global GDP will reach around 58 per cent based on 5-year compound annual growth rates (CAGR).

The gravity of change has not sunk into the policy making circles as yet according to Federation of Micro and Small & Medium Enterprises (FISME).

“India should revamp its trade promotion policies and focus them on Asia. It would not be efficient to deploy resources for market access in West which is shrinking. Instead India should focus on Asia”, says Anil Bhardwaj, Secretary General of FISME.

In contrast, Europe and North America's combined GDP contribution is expected to shrink to just 29 per cent over the same period.

This extraordinary economic shift in under a decade is driven largely by the furious growth of economic powerhouses China and India, along with many other fast-growing Asian nations.

India, with its vast population and rapidly expanding middle class, is seen as having immense potential for further export-oriented growth.

The government has implemented a series of policy reforms and initiatives aimed at making Indian exports more competitive globally. The new Foreign Trade Policy 2023-2028 aims to achieve exports of USD 2 trillion by 2030, nearly tripling from USD 676 billion in 2021-22.

Key measures include enhancing logistics, removing regulatory hurdles, developing export infrastructure, and supporting export-oriented manufacturing and job creation.

"India is uniquely positioned to meet the needs of the world's fastest growing markets," said Commerce Minister Piyush Goyal. "Our focus is on promoting exports of high-quality goods and services leveraging our strengths in IT, engineering, pharmaceuticals, textiles and more."

While recent years saw some growth moderation due to COVID-19 disruptions and geopolitical tensions, economists expect India's export engine to regain momentum.

With its large youth workforce, policy support and participation in new free trade agreements, India appears determined to claim a larger share of global exports as Asian economic dominance rises.

(KNN Bureau)

COMMENTS

rajveer singh 10/05/2024 1:37 PM

1. Overreliance on Asia: While Asia's economic rise is undeniable, placing too much emphasis on the Asian market could make India overly dependent on this region. Diversifying export markets should also be a priority to mitigate risks. 2. Competitiveness concerns: The article mentions India's strengths in sectors like IT (no more) all coders will be out of job due to ai, engineering (due EV 40 percent engineering units will face exit), and textiles (Vietnam and Bangladesh already defeated India). However, India will need to continuously improve its competitiveness in these areas to capitalize on the Asian opportunity, given the presence of other major exporters in the region. 3. Regulatory and infrastructure challenges: The article briefly touches upon the government's efforts to address regulatory hurdles and enhance export infrastructure. However, more concrete and sustained policy actions may be required to truly enable Indian exporters to thrive in Asian markets. 4. Geopolitical considerations: The article does not delve into the potential geopolitical risks and uncertainties that could impact India's trade relations with various Asian countries. Navigating these complex dynamics will be crucial.

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