India's share in exports should reach 4%, economic advisor says.

MANGALORE: India should aim to increase its share in world merchandise exports from 1.6% in 2012 to respectable figure of at least 4% in the next five years. For this, compounded annual growth rate of exports in next five years should be around 29-30%, which is not impossible, said H A C Prasad, additional secretary, and senior economic advisor, union ministry of finance at an exporters meet organised by Federation of Indian Export Organisations.

From 2003-04 to 2007-08, India continuously had annual export growth of above 20 per cent with 29 and 31 per cent growth in two years, Prasad said, adding this can be achieved with product diversification along with market diversification. While India has made new forays in skill-and capital-Intensive exports like information technology, gems and jewellery, and engineering goods, it is losing steam in its traditional area of strength, he said.

India has negotiated many free trade agreements (FTAs), regional trade agreements (RTAs) and comprehensive economic cooperation agreements. While exports to FTAs/RTAs have been increasing, India is facing problems in some FTAs with imports from some affecting domestic production or livelihood concerns and in some cases greater inflow of imports than generation of exports. India should focus on those FTAs/RTAs where its gains are highest.

India's push towards regional and bilateral agreements should result in meaningful and result-oriented FTAs and CECAs. India has to see how to face new threats like Transatlantic Free Trade Agreement between US and EU which intends to create world's largest free trade area, protect investment and remove unnecessary regulatory barriers. Studies have shown India can diversify its exports of technology intensive products to different RTAs, he said.

Source : timesofindia.indiatimes.com