The Indian government is formulating a comprehensive trade strategy to unlock growth opportunities and foster collaboration to reach a lofty goal of $2 trillion in total exports, including goods and services, by 2030. According to reliable sources, it also aims to boost India’s share in global trade from 2.7% to 10%.
The Department of Commerce is currently finalizing a strategy paper that aligns with the vision of trade as a catalyst for economic expansion. Extensive consultations have been conducted with various stakeholders, including government departments, export promotion councils, and industry bodies such as CII, FICCI, and NASSCOM. The strategy paper addresses vital aspects such as optimizing trade logistics, diversifying merchandise and services portfolios, and exploring new markets.
Nevertheless, the government is deliberating on the timing of releasing the strategy paper amidst prevailing geopolitical tensions and uncertainties. An official explained, “While we have gathered valuable insights from key stakeholders, the timing needs careful consideration due to global uncertainties, including the West Asia crisis.”
The strategy paper seeks to provide a granular focus on the trade dimension and intends to be a long-term approach for policy formulation. Meanwhile, industry associations like the Federation of Indian Export Organisations (FIEO) have recommended empowering small businesses in the services sector. FIEO highlighted that onerous financial criteria disproportionately impact micro, small, and medium enterprises, preventing them from participating in government tenders. They proposed using bid bond guarantees through banking channels as a more effective measure to assess project risks and verify the financial stability of awarded companies.
As the government prepares to unveil the trade strategy, it remains committed to driving exports, enhancing competitiveness, and positioning India as a formidable global player.
