Exports / Imports are essential operations of any Economy. India has given a great window of opportunity to gain it's position in International Markets. Let's find out how as exporter it helps you grow your business & how you can contribute towards mutual goal of being lead exporting nation?

Effects of Exports...

Exports can make or break GDP. As a 12% decrease in exports can lead to a 2-4% decline in GDP. They play a crucial role in the development of economy in developed, developing as well as under-developed countries for the following reasons –-

• They help in gaining recognition in the international market.
• Businesses revolving around exports create the most value-added and high-profile jobs.
• Exports bring into account international competitiveness.
• They help in earning foreign currency.

# Opportunities of India : Boon & Bane -

India is a land full of diversity, which is both boon and bane. The diversity can help India become self sufficient as it would be able to produce a great variety of raw materials within the country due to the presence of variety in work force and in natural resources. The diversity, has however posed a challenge for India in becoming an export giant due to differences in the development of trade in states and Union territories.

Now, Let’s look at the differences caused due to diversity –

• More than 70% of Indian exports are carried out by five states viz., Maharashtra, Gujarat, Karnataka, Tamil Nadu and Telangana.
• States like Andhra Pradesh, despite being coastal, are unable to perform well due to less investment in R&D, transportation facilities etc.
• The north eastern estates, rich in resources, but are not able to compete due to lack of proper transportation channels.
• Trade literacy is another major problem.
• Poor trade support from states. E.g. only 9 states have projects approved under TIES.
• Lack of airports and SEZ’s in some states.

# Having discussed the problems, let’s talk about the opportunities –

• With growing dissonance between China and western and European countries, India can take up the opportunity to be a supplier of items to these countries like Vietnam did.
• India has a huge population of millennials and gen z implying more agile and energetic workforce.
• India is a home to exclusive items such as spices, gems etc.

# What can the state and central government do?

• Together they can work on encouraging digitization at various levels in the supply chain.
• They can construct ports (for waterways), airports terminuses and SEZ centres across the regions.
• For standardization of products labs should be set up across country and R&D facilitation should be encouraged.
• Trade literacy can be provided to exporters with the help of collaboration with various educational institutions.

Whats Next?

Depends on you, Trade war benefited India $755 million in additional exports!

Therefore, we can see how collective collaboration can take India further even in these unprecedented economic and global business situations. It’s all about leveraging the global trade scenario. For example – The recent trade war between US and China benefited Indian exports. India grew about $755 million in additional exports.