Commerce and Industry minister Piyush Goyal on September 12 said that India needed a 19-20 percent growth in exports to achieve Prime Minister Narendra Modi's vision of a $5 trillion economy.
"On the export front, we are willing to take bold decisions and steps. The $5 trillion dollar economy cannot be completed unless we once again get back to the 19-20 percent growth levels. So we are clearly looking at a trillion dollar export in the next five years and its eminently doable, not at all beyond imagination, but you need to dare to accept a large target. Unless you accept the larger goals, we are not going to reach anywhere close to that," said Piyush Goyal in an address at the Board of Trade meeting.
India's goods exports in July posted a marginal growth of 2.25 percent (year-on-year) to $26.33 billion as out-bound shipments from major sectors such as petroleum, gems and jewellery, engineering goods and leather registered a decline.
Trade deficit during the month shrank significantly to $13.43 billion from $18.63 billion in July 2018 as imports contracted 10.43 percent to $39.76 billion.
Goyal also said that the merger of banks would enable them to disburse enhanced credit, raise their risk appetite and to raise resources from the market.
A recapitalisation amount of Rs 70,000 crore will be released to public-sector banks upfront and additional lending and liquidity to the tune of Rs 5 lakh crore that will benefit corporate, retail borrowers, MSMEs, small traders and exporters, Goyal said.
The pending dues for the Goods and Services Tax (GST) refunds to MSMEs would be paid within 30 days and the one time settlement policy will benefit MSMEs and retail borrowers in settling their overdue, the minister said.
"The ministry will soon be coming out with a credit scheme for exporters with enhanced insurance cover up to 90 percent instead of the present 60 percent," Goyal said.
Goyal said that there has't been much growth in exports this year and it is unsatisfactory because India has a huge potential for exports due to the ongoing trade dispute between US and China.
"We have a trade surplus of $17 billion with USA while we have a trade deficit of $53 billion with China," Goyal said. India needs to work on its strengths by exploring market access for agriculture and pharma products in different regions, the minister said.
Both central and state governments together have to take measures for further improving ease of doing business, decrease logistics cost, simplify regulatory procedures, he said.
"It is a matter of pride that our rank in Ease of Doing business has improved from 142 in 2014 to 77 in 2018 with trading across borders up from 122 to 80. However, we have to break into top 50 nations and we have to improve ease of doing business throughout the country and the states have to play a major role in this," Goyal said.
Source: moneycontrol.com