A study has identified 31 products such as women's apparel, drugs, and cyclic hydrocarbons that have high export potential and can make India a top exporter of these products, industry body CII said Sunday.
The study has come against the backdrop of India's exports entering the negative zone after a gap of eight months in June, recording a decline of 9.71 per cent to USD 25.01 billion.
For enhancing the market promotion of the select products, the industry body recommended that non-tariff barriers must be taken up with the respective governments of destination countries.
It also suggested facilitating effective marketing strategies by setting up centres in top international markets, product promotion and integration of brand building initiatives with India's commercial missions.
"An export strategy assumes greater significance given a rapidly changing global trade landscape, shifting of global value chains and new free trade agreements, including mega trade agreements. CII has analyzed and identified select export items where India can become a leading exporter and offers recommendations for boosting such products, CII Director General Chandrajit Banerjee said.
In a research paper, Indian Exports: The Next Trajectory Mapping Products and Destinations, CII has suggested a double-pronged approach of expanding domestic production and undertaking targeted promotion in top importing nations to build exports in these items.
To encourage domestic manufacturing, the chamber called for strengthening industrial clusters with related infrastructure and port connectivity.
It also recommended adopting an integrated value-chain approach for establishing global linkages is another important recommendation which would require interventions such as logistics and infrastructure support, skill development initiatives, among others.
Trade and investment agreements and an infrastructure for promoting standards and certifications are needed, said CII. Incentives to encourage greater adoption of technology and innovation and boosting high-tech exports are also suggested. A key recommendation is the need for developing an export strategy at the state level, based on states' comparative advantages.
The paper employs a dual identification strategy of shortlisting top imports of the top importing nations. These products at the HS 4-digit level are mapped with India's current export profile for determining its export competitiveness to these top importing nations.
These are based on four criteria - the total exported value of products, world export shares, India's rank as a top exporter in the top import items and India's frequency as a top exporter among those top imports.
After applying these filters, 31 products are identified. In Achievers' where India has a strong footprint, the categories of women's apparel and medicaments are top products.
The Aspirers' category includes cyclic hydrocarbons and furniture, among others which have significant potential. Products where capacities need to be enhanced' include telephone sets, electrical apparatus, motor cars and motor vehicles, etc.
Cumulatively, during April-June 2019, exports dipped 1.69 per cent to USD 81 billion, while imports were contracted by 0.29 per cent to USD 127 billion.
India is facing headwinds from ongoing global trade conflicts at a time when some other countries are capitalising on changing supply chains and the country must step up its export strategy to compete, the industry body said.
Disclaimer: No Business Standard Journalist was involved in creation of this content
