Government plans specific policy to boost exports
In order to promote exports, the Union commerce ministry is planning to prepare a detailed project report based on market research. The report would guide the exports to ten geographies across the globe including East Africa and Latin America.
A group comprising of Union Commerce and Industry Minister Suresh Prabhu and senior Exim Bank officials met recently and discussed the volume of exports at the meeting.
About the report
The Exim Bank (Export-Import Bank of India) would conduct a macro analysis and the specifics will be analysed by some expert consultants.
Prabhu recently made a case for to promote the support measures for exports as investment and not subsidies. He emphasised that outbound shipments contribute to boost growth.
As the exports in October dropped by 1.1% and entered the negative zone, the fall in volume of exports was attributed to the liquidity problem being faced by exporters following the transition to Goods and Services Tax.
Why Asia, Africa and Latin America
The US and the European Union hold about 25 per cent of the country’s total merchandise exports. Huge potential exists in regions like south east Asia, Latin America and East Africa. The specific plans would help boost the shipments to these regions.
Experts believe that the size of these markets, competitors, economic engagement with them, technical standards and a suitable strategy need to be prepared for these regions.