India’s Exports Performance is a Result of Policy Interventions [Current Affairs]

India’s robust export performance has made a critical contribution to its economic growth in recent times. Despite global economic woes, India’s overall exports, merchant and services combined, grew at 17.33 per cent during April-January 2022-23 on a year-on-year basis. This is an important development related to the Indian economy section for the IAS exam.

India’s performance on exports is a result of policy interventions

• Free Trade Agreements – Many Free Trade Agreements (FTA) signed by India earlier did not help India much. The Ministry of Commerce has re-examined all the FTAs and is working on new FTAs which will benefit India.
  • Recently, India negotiated new FTAs with Australia, Mauritius and the UAE. It is in the advanced stages of negotiations with the UK.
  • It is also actively exploring new trade agreements with the EU and the US.
• Cooperation with state governments – The Ministry of Commerce has been actively engaging with state governments and at the district level also for speedy and effective implementation of policy measures to promote exports.
  • Each of the Indian states was asked to prepare an export promotion strategy.

• Restructuring of processes – Adopting the latest technology in the collection, assimilation, processing of data and making available real-time information across stakeholders has bridged the information gap between the exporters and the various government departments.
• Logistics – Logistics has been a big hurdle in India’s exports competitiveness. It was addressed in the Union budget 2023-24.
  • Capital expenditure allocation has been sharply increased by 33% to a record Rs 10 trillion on the development of ocean, air, road and rail infrastructure.
  • It will integrate Indian production systems with global value chains.
  • It will make export logistics efficient. 
• Production-linked Incentive schemes – PLI is a game changer. It transformed India into a manufacturing hub. It helped reduce the huge trade deficit in manufactured goods and electronics goods.
  • Exports of mobile phones alone may reach $10 billion during the current financial year.
  • Electronics manufacturing attracted a massive investment and its exports have grown rapidly by over 55 % annually. 
• Export facilitation – It ensured the effective conceptualisation and implementation of export promotion schemes.
  • These schemes are Interest Equalisation Schemes on pre- and post-shipment rupee export credit, Trade Infrastructure for Exports Scheme (TIES), Remission of Duties and Tax on Exported Products (RoDTEP) and Market Access Initiative (MAI).

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