The strategy suggested a four-point approach for identifying products and markets for exports. These include product-market penetration strategy for existing products; market diversification strategy for existing products; product diversification strategy for existing markets; and product market diversification in the case of new products and new markets.
The strategy, according to the report, aims at striking a balance between growth and risk. The report said, “we should also analyse items with high potential in world demand by looking at the import basket of major trading partners to identify items which can lead to the export growth at a higher trajectory.”
The potential items identified in the group have been grouped into six focus sectors including engineering/electrical/electronics (including instruments and repaired products); textiles; gems and jewellery; chemicals and allied (including marine products and plantations); leather; and footwear.
The cumulative value of imports of these items in the main world market has been estimated at $1,600 billion and India’s exports at $ 19 billion accounts for 1.18 per cent of the world market.
The report says, “while the products identified also account for a large value of our current exports, the potential for growth is enormous”.
The focus 25 markets identified by the strategy report include the US, EU, Japan, Hong Kong, China, Korea Republic, Australia, Canada, Mexico, Switzerland, Brazil, Turkey, Poland, Taipie Chinese, Singapore, Thailand, Russia, Israel, Norway, Argentina, Indonesia, Saudi Arabia, UAE, South Africa and Greece. The immediate focus, the report suggested, should be on the US, EU, Japan, Hong Kong-China, Korea Republic and Australia.