Several initiatives are being taken by the commerce department especially in the financial year 2022 to increase export earnings and dominate the key markets. People associated with the development said that exports to Africa have increased due to initiatives like ‘One District One Export Plan’ and also given priority to the updated trade infrastructure plan by the commerce department in the first quarter of calendar year 2022. is going. He said that orders have been issued by the Ministry to implement these initiatives expeditiously.
Export target of $400 billion
After the slowdown due to COVID-19, India’s exports have seen growth for 12 consecutive months till December. Merchandise exports grew to $263.5 billion in April-November, 2021-22, an increase of 51.3 per cent over the same period of 2020.
Officials said that to capitalize on the increase in exports, the department has identified a key policy, which aims to take India’s exports to an unprecedented $400 billion by the end of FY22.
This is also an increase of 24.8% over the same period of 2019 before the pandemic. The new agenda raises hopes of going even further.
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emphasis on districts
With emphasis on spreading economic growth and diversifying India’s export basket, the government has focused on exports from the district level. After its launch in early 2020, the Department’s Export Hub initiative has compiled products and services with export potential across all districts of the country.
This initiative seeks to promote export promotion, manufacturing and employment generation at the grassroots level. The scheme is based on individual District Export Action Plans (DAEPs), which identify rapidly growing, economic sustainability and sustainable export opportunities at the district level.
A senior official said, “In 2022, the department will expeditiously complete the rest of the process, most of which is pending at the state and district administration levels. Successful completion of these is an essential parameter of NITI Aayog’s Annual Export Preparedness Index and affects the performance of the state. But some states are lagging behind.”
Similarly, the commerce department has decided to be strict towards backward states on all aspects, he added. Some states, such as West Bengal, have not yet set up state level export promotion committees, while some smaller states do not yet have a comprehensive state export policy.
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DAEP has helped Gujarat identify Jamnagar as the top exporting district. The district earned $19.26 billion in fiscal 2021 through supplies from large petroleum refineries. Pune district of Maharashtra is the top source of engineering goods, followed by Kancheepuram district of Tamil Nadu.
At the same time, Noida in Uttar Pradesh is the largest source of electronic exports from India.
Trade infrastructure
The department is planning to increase the coverage of its trade infrastructure. Under the existing Trade Infrastructure for Export Scheme (TISE), the government provides funds for specific infra projects that have the potential to increase exports. It has a grant limit of Rs 20 crore for each infrastructure project. In this regard, the department is demanding more funds for the development of export infrastructure in the upcoming budget.
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Project Export
The government will also explore export opportunities from India to the world, especially Africa. Project export means setting up of engineering, construction or infrastructure projects abroad. In simple words, export of engineering goods/services on deferred payment terms refers to project exports, which include civil construction work abroad as well as execution of turnkey projects.
The official said, “In East Africa, once there was a good penetration of Indian project consultants, there are a dozen project exports from China, while India has none. We have to change this situation and that too soon.”
These include a rail project like the $3.2 billion Nairobi to Mombasa train line in Kenya, an urban rapid transport system like the $3.4 billion Addis Adaba Metro in the Ethiopian capital, and a hydraulic power plant like the Meroway Dam in Sudan.
According to the Project Export Promotion Council, exports from India have fallen sharply in the last five years. Project exports reached $8.27 billion in 2016-17, but fell to $4.23 billion in 2019-20.
The government had last year announced an incentive of Rs 33,000 crore for project exports through the National Export Insurance Account, but it did not materialise. Officials said that they are now working with the Ministry of External Affairs to resolve this.
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