CII has identified 18 developing economies that hold the promise of sustained growth over the coming few decades based on current GDP levels and population indicators. These are: Brazil, Mexico, Indonesia, Turkey, Thailand, South Africa, Malaysia, Philippines, Egypt, Vietnam, Ethiopia, Myanmar, Ghana, Tanzania, Uzbekistan, Cote D’Ivoire, Cambodia and Guinea.
The report titled ‘India’s Exports to Emerging Economies: Targeting Prospects and Chasing Opportunity’ was released by Honorable Mr Piyush Goyal, Minister of Commerce & Industry and Railways, Government of India at the CII Exports Summit in New Delhi today.
Given the current growth trends in these nations, their existing import demand, as well as India’s current standing as a source of imports into each of these countries should be the focus for India’s export promotion activities. As India moves beyond RCEP negotiations, it is directing its focus on the mature advanced economies of US, Europe, Japan etc. while also remaining committed to bilateral trade negotiations with emerging economies (including the countries engaged with RCEP). The CII list of 18 countries thus comes at a crucial time.
CII’s research also pinpoints to 53 products at the 4-digit HS code level which hold strong prospects for greater inroads into the identified emerging economies. These products were identified based on a multi-tier analysis including the top imports of the identified countries, India’s current export competitiveness in each of the products (Revealed Comparative Advantage) and current global export volumes. Of this list, the products have been further sub-divided into three lists to indicate levels of export potential from India based on existing competitiveness and other factors.
The top list of ‘Export prospects’ include products like Iron and Steel, Chemicals, Motor Vehicles, Auto parts and components, Machinery; Electrical appliances besides Rice, medicaments for therapeutic uses, insecticides etc., certain textiles, specific metals and fabricated metals, etc. The report also provides comprehensive recommendations that point to ways in which India, through concerted efforts, could expand exports to these economies and in the identified set of products.
Commenting on the report, Mr. Chandrajit Banerjee, Director General, CII said “The government and industry are working collaboratively to devise avenues by which India can enhance its export capacity – this includes re-thinking of the configuration of free trade zones, continued sectoral reforms, greater attention to financial resources available to companies, infrastructural improvements as well as major changes in the country’s overall trade policy. The report identifies the top emerging economies India should target, as well as the potential commodities from India that can be exported to these nations – these will, I hope, contribute to the discussions shaping India’s trade priorities in substantive ways.”
17 December 2019
New Delhi