The commerce ministry is being restructured to have a dedicated export promotion body, a large wing for trade negotiations and a trade intelligence and analytics set-up. This is part of the broader efforts to make the ministry “future ready” and put in place an ecosystem to achieve the ambitious $2-trillion export target by 2030 and help create a large number of jobs, commerce and industry minister Piyush Goyal said on Tuesday.
The trade promotion body will devise an overall strategy to achieve the target. Prior to the move, trade facilitation was handled by different officers belonging to various divisions, along with the directorate general of foreign trade. Similarly, focus will also be on bolstering capability for trade negotiations. Commerce secretary BVR Subrahmanyam said within this wing there will be two verticals—one for handling multilateral negotiations (for World Trade Organization) and the other for bilaterals (free trade agreements, etc.).
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At the same time, the ministry will draw private sector talents to add to its negotiating muscle, Goyal said. The strength of the Indian Trade Service officers may also be enhanced. This is aimed at preparing a dedicated bunch of trade negotiation specialists, which will also help retain institutional memory even if the IAS officers heading the wing depart.
The restructuring of the ministry also involves centralisation and digitisation of trade facilitation processes and overhauling of the data analytics ecosystem. However, Goyal made it clear that the restructuring process won’t result in any job losses at the ministry; instead, the staff strength may rise. “Indian trade and commerce will not only be a strong element in India’s march to prosperity, towards becoming a developed nation in the Amrit Kaal, but also play an extremely important role in serving the needs of the whole world,” Goyal said.
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The ministry, Goyal said, is bracing for greater multilateral and bilateral engagements with other countries like never before. The structuring is being undertaken after a lot of research, the commerce minister said as he launched a dossier on the restructuring.
The move assumes significance, as the country is either negotiating or planning to start talks for a flurry of high-stake FTAs with key economies, such as the EU, the UK, Canada, Israel, members of Gulf Co-operation Council (GCC) and Australia. While New Delhi has clinched an interim deal with Canberra, talks for a full-fledged FTA could start soon. Together these economies (excluding the UAE, a part of the GCC, with which an FTA is already signed) contributed as much as $108 billion, or 26%, to India’s merchandise exports in FY22.On export performance in the current fiscal, Goyal exuded confidence that the country will achieve the desired goal.