Domestic expertise in items of huge global demand key to make India $5 trillion economy: FIEO CEO Ajay Sahai

Currently, 70 percent of India’s exports are targeted to a segment of products that have 30 percent of global demand, Dr Sahai pointed out while speaking via online mode at an e-knowledge session themed ‘Foreign Trade Policy: EXIM Potential & Prospects’ organised by MCCI on Thursday.

He mentioned that the Centre's Product Linked Incentive (PLI) scheme, aimed at boosting domestic manufacturing, is covering all these sectors which will be a game-changer in the coming days.

The FIEO CEO emphasised the need for more FDI in the large-scale manufacturing sector for India’s success to export performance and this can only happen if investors get little comfort of relocation.

He highlighted the need for branding of the products and very minuscule of India’s exports are in its own brand.

There is a need for a 3-tier strategy structure in this regard he underscored and suggested that each association could be given a task to brand a product.

“There is a huge opportunity for India to integrate itself into global value chains (GVCs). Currently, only Automobiles, gems & jewellery, and pharmaceuticals are in the GVC, we need to bring in more products in GVC going forward,” he said.

FTAs with the complimentary countries in which there is a market for India’s products must be encouraged and the Government of India is taking noteworthy measures in this area.

He said that the ECTA with Australia will be operational by December or January.

He further added that R&D and Product Innovations are key to exports.

There is a tremendous opportunity for India to take advantage of the global scenario as Russia requires everything in which India has a comparative advantage.