MVIRDC WTC Mumbai Releases Study on India’s Export

India’s merchandise exports witnessed phenomenal growth of 34% in the year 2021-22 from its pre-pandemic level in 2019-20. In order to sustain this growth momentum, Indian exporters need to be globally competitive in terms of cost, delivery timelines and quality. To understand the issue of competitiveness, MVIRDC WTC Mumbai conducted a study on 'India's Export Competitiveness' through an extensive primary survey and meticulous analysis of foreign trade data from authentic sources such as UNCTAD, ITC, Geneva and India's Ministry of Commerce. 

Based on the survey and data analysis, the study made more than eight policy recommendations for boosting exports. The study identified 100 champion products for exports, highlighted export potential in North Eastern states and examined trends in services exports.

The study was released by Mr. Suman Bery, Vice Chairman, NITI AAYOG at a virtual event organised by MVIRDC WTC Mumbai. Speaking at this event, Mr. Bery suggested that India should focus on promoting apparel export on mission mode. He strongly felt that there was no reason for India to lose out on export opportunity in this sector to neighbouring countries as it has been a global hub for textile manufacturing since time immemorial. ‘’It is time we leverage our policy initiatives such as mega textile parks to aim for increased exports not only in yarn and fabrics, but also in apparel and clothing” recommended Mr. Bery.

The study highlighted that India’s share in world export of high value added items such as apparel & clothing has remained stagnant at around 2.3% since 1990, even as our share in low value added items such as yarn, fabrics, made-up articles improved from 2% to 6% between 1990 and 2018.

Mr. Bery welcomed the idea of encouraging foreign trade settlement in local currency and suggested that RBI and banks may resolve practical difficulties such as free convertibility of local currencies, availability of hedging and trade finance in local currencies, development of alternative payment infrastructure etc. 

He also suggested WTC Mumbai and other export promotion organisations to handhold MSMEs and  integrate them in the global value chain in the new world order, where they have to comply with strict sustainability standards involving environment, labour and product traceability norms. ‘‘These sustainability standards are important issues in our negotiation of trade agreement with large partners such as European Union’’ pointed out Mr. Bery.

Earlier in his welcome remarks, Dr. Vijay Kalantri, Chairman, MVIRDC World Trade Center Mumbai suggested that the central government may set up a task force under NITI AAYOG to revive local MSME units that became sick due to unfair competition from imports, especially in printed circuit boards, white goods and electronic components.

During the event, Mr. Suman Bery also launched WTC Mumbai’s Connect India Trade Show 2022, which aims to facilitate global market access for more than 50,000 MSMEs through a digital platform. This platform enables local companies to showcase their products and services to their prospective buyers in India and abroad. The digital platform went live from August 1, 2022 and is scheduled to end on November 30, 2022.