core sector communique

Export Target of US $ 200 Billion to be Achieved – to Double India’s Exports by 2014: Anand Sharma

Consultative Committee on Commerce Meets

Shri Anand Sharma, Union Minister of Commerce and Industry, while addressing the Members of the Consultative Committee Meeting of his Ministry, here today, said that with the set of measures announced recently, we will be able to achieve the target of US $ 200 billion by the end of this financial year. He further added that in the remaining three years of the Foreign Trade Policy i.e. by the end of 2014, we should be able to maintain a high growth trajectory of annual export growth of 25% and will be able to double India’s exports of goods and services. “Exports in September stood at US$ 103 billion as against US $ 81 billion in the previous year, showing an average growth of 27.6%”, the Minister said. The Meeting was attended by Shri Jyotiraditya M Scindia, Minister of State for Commerce and Industry and Shri Rahul Khullar, Commerce Secretary. Members who attended the meeting were: S/Shri Joseph Toppo, Gorakh Prasad Jaiswal, Kristappa Nimmala, Manohar Tirkey, T K Rangarajan, M Rajasekara Murthy, Naresh Gujral and Prof. Anil Kumar Sahani.

During the interaction, Shri Sharma said that while our export projections are well on target but based on experience of recent times, it is important to have a diversified market and ensure a better risk management for our exports to buffer against any challenges which may come with the changes in global economy. It is with this intent that we are engaging with all major economic regions of the world. The Trade in Goods Agreement with ASEAN has come into force. This Agreement is expected to increase trade between India and ASEAN. Similarly the agreement with Korea has also come into force. These initiatives will provide new avenues for expansion of our exports. “I am happy to inform you that we have concluded negotiations for a Comprehensive Economic Partnership Agreement (CEPA) covering trade in goods, investment and services with Malaysia and Japan and during the recent visit of Prime Minister, a document was signed informing the conclusion of negotiations in Malaysia and a joint statement of Prime Ministers in Japan announcing the conclusion of negotiations with Japan. I expect that early next year, we will see the formal signing of the two agreements with these countries”, Shri Sharma said.

Speaking on the occasion, Shri Sharma highlighted that “we are now engaged in arriving at an ambitious broad-based trade and investment agreement with European Union and I am optimistic that in the coming months, we shall be able to arrive at a mutually rewarding and a balanced outcome with European Union. We are also engaged with SACU under the broad framework of IBSA as we have concluded Preferential Trading Agreement with the MERCOSUR countries. Apart from our bilateral trading engagement through the Free Trade Agreements, we have also been engaged bilaterally with all major economies including USA, United Kingdom, France, Germany, Russia and Brazil through regular high-level visits and business exchanges to create a better understanding and to enhance our trade volumes”.

As regards the multilateral trade, the Minister said that while we are engaged bilaterally with these regions, it does not take away our commitment to the successful conclusion of the Doha Development Round. India remains firmly in favour of establishment of a rule based fair and equitably global trading regime, which has development as its core agenda and which seeks to correct the distortions of history. He further added that “Recently, I visited Geneva to interact with the Ambassadors to WTO of all major developed and developing countries to get a sense of progress on the Doha Round. I exhorted them and through them their principals that developing countries have much to gain and most to lose in the success or failure of this Round”.

Shri Manohar Tirkey and Shri A K Sahani highlighted the issues relating to fruits and vegetable exports; Shri T K Rangarajan expressed concern on India losing export markets in developed countries and stated the need for creating domestic demand; Shri Joseph Toppo mentioned issues pertaining to production of tea and exports; and Shri Naresh Gujaral raised the issue pertaining to duty drawback and export promotion. Responding to the queries raised by the Members, Shri Scindia stated that all efforts are being made to ensure that the exports continue to rise in the coming months.

While informing the Members about the recent measures, Shri Sharma said that the objective of the Foreign Trade Policy 2009-2014, was to arrest and reverse the declining trend of exports and added that we adopted a multi pronged strategy, providing a stable policy regime, adopting a conscious market diversification plan, providing additional support to sectors hit badly by the global recession, encouraging technological up-gradation of export sectors, and undertaking simplification of procedures to reduce transaction costs. Some of the important announcements were: 112 new products under Focus Product Scheme (FPS), addition of 113 new products under Special FPS, addition of 2037 new products under MLFPS (Market Linked Focus Product Scheme), addition of two new major markets, - China and Japan under MLFPS, addition of sesame seeds and minor coconut products under Vishesh Krishi and Gram Udyog Yojana (VKGUY), and providing incentives for approximately 300 products in apparels and readymade garments.