As India moves beyond RCEP negotiations, it is directing its focus on the advanced economies of US, Europe, Japan, etc.
To boost exports from India and to make domestic industries more competitive and proactive, the government has said that it is stepping up engagement with the EU, the US, and the UK separately. Speaking at the Exports Summit 2019, Minister of Commerce and Industry Piyush Goyal has underlined the need for enabling and empowering the Indian industries to take advantage of global value chains. He further said that the government is working to bring more predictability to export finance, exports scheme, and productivity, according to a statement released by the Ministry of Commerce and Industry.
“As India moves beyond RCEP negotiations, it is directing its focus on the mature advanced economies of US, Europe, Japan, etc. while also remaining committed to bilateral trade negotiations with emerging economies,” said a report by CII. The top list of export prospects that India is aiming at are iron and steel, chemicals, motor vehicles, auto parts and components, machinery, electrical appliances, etc.
Re-thinking of the configuration of free trade zones, continued sectoral reforms, greater attention to financial resources available to companies, infrastructural improvements as well as major changes in the country’s overall trade policy are the avenues where the government and industry are working collaboratively to enhance India’s export capacity, said Chandrajit Banerjee, Director General, CII.
At the Exports Summit 2019, spoke about our Government’s commitment to work with industry stakeholders to boost competitiveness, exports & manufacturing to drive growth and job creation. https://t.co/c2CRQ4HZ51 pic.twitter.com/UkLIvfRJ7q
— Piyush Goyal (@PiyushGoyal) December 17, 2019
However, as far as spending is concerned, the states are on the back foot in recent years. “States have reduced their capital spending in order to adhere to fiscal deficit targets in the last few years. This seems to have, in turn, affected investment adversely,” said an RBI report.
Meanwhile, Piyush Goyal said that he hopes that industry will support the government’s efforts to cut non-essential imports, reduce dependence on imported goods and will embrace domestic regulation to step up production by taking advantage of the government’s policies.