Conclude FTAs With Top Importing Countries: PwC To Modi Govt
India’s export basket has diversified with a revealed comparative advantage in over 1,400 commodities
PwC India in its recent report has urged the Modi government to conclude free trade agreements (FTAs) with major global importing countries where India currently doesn’t have any active trade agreements such as the United States (US), the European Union (EU), the United Kingdom (UK), Gulf Cooperation Council (GCC), African free trade area, etc.).
In its Viksit framework - an approach to achieve USD 1 trillion merchandise exports from India by 2030, PwC urged the government to encourage and incentivise private sector initiatives which enable net-zero/decarbonisation transition. “ Promote usage of sustainable aviation fuel via issuing green credits to MNCs using green flights for business,” it added.
Talking about inclusive industrial development, it recommended the government set up an apex body for export promotion in India, establish SEPCs in all Indian states where they do not exist, make all the existing SEPCs fully functional (currently only some of the SEPCs are functional) and evaluate export-linked incentives (ELIs) for merchant exporters.
“Formulate a new SEZ policy and attract anchor investors, especially from hi-tech sectors to replicate the success of current SEZs. Develop partner government authorities (PGAs) infrastructure near key manufacturing hubs and ICDs and deploy non-intrusive inspection systems at seaports, CFSs and ICDs for exports to reduce cargo release time of export containers,” PwC noted while talking about infrastructure investments.
PwC report added that India is projected to reach USD 1 trillion in merchandise exports by FY29. Notably, India’s contribution to global trade grew by two times from 0.5 per cent in 1990 to 1.85 per cent in 2023. The country's exports grew 8.6 times from 2003 to 2023.
