Commerce and industry minister PiyushGoyal has asked exporters to identify costs related to land, labour and royalty that hinder them from benefitting from the US China trade war and adding $10-12 billion of exports. “In order to achieve the target of $5 trillion economy, India’s exports will have to contribute at least $1trillion,” said an official statement quoting Goyal after his interaction with exporters on Wednesday on ways to increase shipments to the US and China amid the trade war.
Exporters see scope for additional $10-12 billion worth of exports if competitiveness is maintained and capacities are created to match large demands coming from these markets. Goyal asked manufacturers and exporters to point out issues which add to the cost of exports, like cess paid on coal, electricity and royalty paid on mines. He also asked exporters and importers to flag issues about availability of land, labour, common effluent treatment plants, cluster development and logistics support required in ports, airports and customs so as to benefit from the tariff escalation. “The minister urged the industry to work together with the government so as to raise India’s share in global exports from less than 2% to 5%,” the Federation of Indian Export Organisations said in a statement. The commerce department has already identified 150-odd products where India can displace US exports to China.
