Since the formation of the NDA government in 2014, India has aimed to elevate its external trade standing by doubling exports of goods and services within five to six years and gaining a larger global trade share. Despite a decade passing and two successive governments, this goal remains distant, with challenges in boosting exports and curbing imports, particularly from China, contributing to a widening trade deficit. Various global factors, including economic uncertainty, protectionism, and geopolitical tensions, have impeded progress.
While efforts such as free trade agreements and export promotion schemes have been undertaken to accelerate trade growth, achieving the desired export levels has been elusive. Goods exports have seen modest growth, with imports outpacing them, leading to a ballooning trade deficit. Services exports have shown more promising results, yet falling short of the ambitious targets set by the government.
The recent unveiling of the Foreign Trade Policy 2023, with heightened export objectives, underscores the urgency for strategic planning and effective policy implementation to propel India towards becoming a global trade powerhouse. The upcoming years will test India’s ability to harness its trade agreements, navigate geopolitical complexities, and boost exports to meet its ambitious targets amidst a challenging global economic landscape.
