Director General of Foreign Trade Santosh Kumar Sarangi stated that to achieve the $1 trillion merchandise exports target by 2030, India must focus on burgeoning sectors such as electronics, renewable energy, IT hardware, and electric vehicles.

During an industry event, Sarangi highlighted the significant growth in electronic exports, which have risen from the 11th or 12th position to become the fifth-highest exported commodity. The surge is attributed to the export of Samsung and Apple phones, with smartphone exports reaching $10.9 billion in FY 23, marking an 88.9% increase from April to August.

In addition to the $1 trillion goods export goal, the target for 2030 includes $1 trillion in services exports. Sarangi emphasised the potential of the IT hardware sector, citing the recent approval of 27 applications under the Production Linked Incentive scheme for IT hardware, involving major brands like Dell, HP, Lenovo, Asus, and Acer.

Sarangi anticipates that the operationalisation of the PLI scheme will elevate IT hardware as a high-export commodity. He emphasised the importance of integrating the IT hardware sector into the global value chain, similar to the success seen in smartphone manufacturing in East Asian countries and China.

The director general also highlighted promising sectors such as solar panels, modules, wind energy, and electric vehicles, stating that the renewable energy sector in India is expected to contribute significantly to exports.

While acknowledging the growth in the electric vehicle industry, Sarangi noted the experimentation and development of EV models by the Indian auto industry. He revealed that India's auto exports increased by 15% in the last financial year to $8.7 billion, and the sector is poised for further growth with innovative EV models.

Apart from focusing on emerging sectors, the government is conducting commodity-wise analyses to identify opportunities for export growth in traditional sectors like tea, coffee, marine products, and food grains. Sarangi emphasised the importance of administrative efforts, including running schemes, promoting Ease of Doing Business, and implementing PLIs to enhance manufacturing competitiveness.

Additionally, he highlighted the government's sector-specific initiatives, such as free trade agreements with countries like the UAE and Australia to provide greater market access to labour-intensive sectors like textiles and leather.

Sarangi concluded by pointing out the potential to increase exports from various districts, as currently, 70 districts out of over 760 account for 80% of the country's total outbound shipments. In the financial year 2022-23, India's exports of goods and services amounted to $776 billion, with goods exports reaching $453 billion.

Source: The Financial Express