The Rise of Indian Food Exports: Piyush Goyal’s Strategic Approach 2023
The government and exporters have the same vision for advancing trade and investment.
To increase India’s share in global trade, the Commerce and industry ministry presented its proposal to export organizations on Monday to promote investment and marketing jointly.
The director general and CEO of the company is Ajay Sahai. the Federation of Indian Export Organisations, announced that the department for promoting industry and internal trade would hold roadshows in 12 nations to draw investments and also engage with domestic stakeholders in tier Ii and tier III to build an ecosystem for export.
To boost India’s export potential, the government, under the leadership of Minister of Commerce and Industry Piyush Goyal, has emphasized a focused approach towards two key sectors: food and electronics. Recognizing its immense growth potential, Goyal aims to tap into the global demand for these products, enabling India to become a significant player in the international market.
India, with its diverse agricultural resources and rich culinary heritage, possesses a vast array of food products that can cater to global markets. Piyush Goyal believes that by harnessing this potential, India can become a major food exporter. The government focuses on enhancing agricultural product quality standards and packaging, ensuring compliance with international regulations. Additionally, Goyal aims to strengthen the supply chain infrastructure, reducing wastage and improving the shelf life of perishable goods.
To achieve these goals, the government has initiated various measures. These include promoting organic farming, investing in research and development for crop improvement, and establishing food processing units across the country. Particular emphasis is placed on fostering value-added products, such as processed fruits and vegetables, spices, and dairy products. Furthermore, the government is actively removing trade barriers, negotiating favourable trade agreements, and creating awareness about Indian food products through international trade fairs and exhibitions.
Another sector that Piyush Goyal is keen on boosting is electronics. As technology continues to rapidly advance, its prevalence in our lives is also increasing.global demand for electronic goods, India has an opportunity to become a manufacturing hub for electronics and strengthen its position as an exporter. The government’s vision is to reduce imports and enhance domestic production, making India self-reliant in the electronics industry.
To achieve this, the government has launched initiatives like the Production Linked Incentive (PLI) scheme, which provides financial incentives to manufacturers for increasing domestic value addition in electronics manufacturing. This scheme has attracted significant investments from domestic and international players, leading to the establishment of manufacturing facilities nationwide. Additionally, the government has focused on creating an ecosystem conducive to research and development, innovation, and skill development in the electronics sector.
While the government’s efforts to promote food and electronics exports are commendable, some challenges must be addressed. Issues such as inadequate storage and transportation infrastructure, fragmented supply chains, and lack of awareness about global market trends pose obstacles to seamless exports in the food sector. These challenges necessitate concerted efforts from government and private sector stakeholders to develop a robust ecosystem supporting food exports.
Similarly, in the electronics sector, despite the progress made through the PLI scheme, India still needs to catch up to competitors from countries like China, Vietnam, and Taiwan. To overcome this, the government needs to create an enabling environment by addressing infrastructure gaps, ensuring a skilled workforce, and offering attractive incentives to attract investment.
Increasing investments, he claimed, will benefit in fostering commerce by integrating with global value chains. The diaspora will be contacted for investment during the roadshows as well. In a meeting presided over by Minister Piyush Goyal, the Commerce and industry ministry also requested that exporters concentrate on high-potential industries like food, electronics, and engineering for a push on exports shortly.
The US, UK, Brazil, Germany, Saudi Arabia, Sweden, Taiwan, Korea, Japan, and Russia are the primary international markets where exports might be further encouraged.
The ministry advised exporters to concentrate on taking part in the largest trade shows and exhibits worldwide to boost exports.
The summit occurred during four months of declining merchandise exports for the nation.
According to Sahai, the drop in exports is common in India. According to port data, he claimed the number of shipments from India had remained the same. “The decline in commodity prices is the cause of the decline in exports in value terms,” Sahai continued.
According to data from the ministry, exports fell for the fourth consecutive month in May by 10.3% on-year to $34.98 billion, while the trade deficit increased to a five-month high of $22.12 billion.
In all, exports fell by 11.41 per cent to $69.72 billion in April and May of the current fiscal year, while imports fell by 10.24 per cent to $107 billion.
The country’s exports are impacted by the slowdown in demand in essential markets, increasing inflation in developed countries, and the war in Russia and Ukraine.
Sunil Barthwal, the secretary of commerce, had previously stated that both ministry divisions were collaborating on a trading plan involving Invest India and Indian missions overseas to encourage the resurgence of exports.
He stated, “We have identified 40 nations that comprise 85% of our exports and are concentrating our efforts on growing our exports until signs of an economic rebound in their home economies become apparent.
Along with officials from the Federation of Indian Export Organisations (FIEO) and business groups, representatives from several export promotion councils from industries like clothing and medical devices attended the conference on Monday.
Piyush Goyal’s vision to focus on food and electronics for India’s export push holds immense potential to boost trade and economic growth. By capitalizing on India’s strengths in agriculture and harnessing the opportunities offered by the electronics industry, the government aims to enhance India’s global competitiveness. However, addressing the challenges and implementing robust strategies will be crucial to realizing this vision. With sustained efforts and collaboration between the government, industry, and other stakeholders, India can position itself as a leading exporter of food and electronics, contributing to the nation’s overall development.
