14 products to drive $1 trillion export aim, defence, green, digital new export areas: CII

In its roadmap to achieve this target, the industry chamber said that India requires a 14% CAGR over 2022-2030 and its share in global exports must be pegged at 5% in 2030 entailing 11x growth over 0.55% share in 2019.

“It is critical to liberalize imports at the same time to ensure that India is able to leverage imported inputs for competitive value-added exports,” CII said in its report ‘Achieving $1 trillion in merchandise exports: A Roadmap’, suggesting India to integrate closely with global value chains and to attract foreign direct investment inflows in its key sectors.

India’s April-January exports were $335.4 billion.

Besides, three other specific areas where new goods are emerging-defence, sustainability and digital technology-can be promoted to develop manufacturing and export capabilities, it said.

In defence manufacturing, the target is to achieve $5 billion exports from the level of $1.2 billion in 2021 can be further doubled $10 billion by 2030 while solar panels, electric vehicles and green products should be focused on. Drones, robotics and automation, and smart products can be given a boost through sector specific policies on the lines of the Production-Linked Incentive schemes where these are not in place.

Moreover, 41 countries including China, the US, Indonesia, Russia, Argentina, Ukraine, and various European countries have been identified where there is scope to expand exports.

“An overarching Technology Commission of India can coordinate, integrate, synergize and manage all technology funding, policy, procedures, development and deployment,” CII said as it pitched for a lower corporate tax rate on products with an Indian patent and targeted investments in research, innovation and technology at 3% of GDP by 2030.

Demand: Global market access

CII called to expedite Free Trade Agreements with large markets such the UK, Canada, European Union, Australia, United Arab Emirates, and the GCC countries along with resolving non-tariff barriers and linking investment agreements with trade pacts.

Though India withdrew from bilateral investment treaties in 2016, CII said protection from disputes and changes in policies is an important consideration for investors and it is “critical for India to be seen as a destination that affords investors’ confidence” and that “investments should be considered as a key chapter” in its trade pacts.

To improve the effectiveness of Advance Pricing Agreement (APA) programme,

it has suggested creating a special window ‘Accelerated APA’ similar to Vivad se Vishwas scheme to address pending cases. India should set up a dedicated internationally recognized marketing agency for export promotion in key markets, CII said.

Supply: National competitiveness

The chamber has sought extension of the Remission of Duties and Taxes on Exported Products scheme to all sectors, Special Economic Zones and aligned to taxes and additional costs.

To build manufacturing competitiveness, CII has suggested a 3-slab structure with nil or minimal duty for raw materials, a low slab for intermediate goods and a standard slab for final goods under a graded roadmap to shift duty slabs to a competitive level over a three-year period.

“A modal mix of roads at 25-30% share, railways at 50-55% and waterways at 20-25% should be the target,” the chamber said on easing logistics movement.

The fourth supply-side issue pertains to trade facilitation under which 28 areas have been identified to create a paperless trade regime and streamlining procedures such as standardization of customs regulations across ports, and independent working of container freight stations and customs work.

On labour reforms, CII said the rules of the four Labour Codes should be framed in consultation with industry, the threshold limit for certain labour laws be increased, states should create a single labour authority and special labour enclaves be created with easy labour regulations that also promote employment at scale.