India Aims to Reach $1 Trillion in Exports by 2029, Says PwC Report
India could achieve the target of $1 trillion in merchandise exports a year earlier than planned, according to a PwC India report. The government aims to reach this milestone by 2029-30.
The report, unveiled by Union Minister Piyush Goyal, suggests that with an annual export growth rate of 18%, the target could be met by 2028-29. Other scenarios with lower growth rates predict achieving the target by 2030-31 or 2032-33.
India has become the fifth-largest economy globally, with international trade playing a significant role. The share of merchandise and services trade in India’s GDP increased from 15% in 1980 to 46% in 2023. India’s share in global trade also improved from 0.4% in 1980 to 1.85% in 2023.
The report highlights the importance of micro, small, and medium enterprises (MSMEs) in achieving export growth. Currently, only 1.36% of India’s MSMEs are exporting. Challenges in business environment, export procedures, access to finance, and market information impact MSMEs’ ability to export.
Sanjeev Krishan, Chairperson of PwC India, emphasized the need for a strategic framework to boost export potential. The ‘VIKSIT’ framework aims to address infrastructural and technological challenges to enhance competitiveness.
The report also stresses the need for product diversification and expanding geographic market access to mitigate market concentration. In the financial year 2023-24, India recorded $778 billion in exports, with services exports rising and merchandise exports slightly declining.
Doubts Revealed
PwC -: PwC stands for PricewaterhouseCoopers. It is a big company that helps other businesses with things like accounting, taxes, and consulting.
$1 trillion -: $1 trillion is a very large amount of money. It is equal to 1,000 billion dollars.
exports -: Exports are goods or services that a country sells to other countries. For example, India might sell spices or software to other countries.
Union Minister Piyush Goyal -: Piyush Goyal is a government official in India. He is responsible for looking after the country’s trade and commerce.
VIKSIT -: VIKSIT is a special plan or strategy to help India improve its exports. It stands for something specific, but the main idea is to make India’s trade better.
MSME -: MSME stands for Micro, Small, and Medium Enterprises. These are small businesses that are very important for the economy.
merchandise exports -: Merchandise exports are physical goods that a country sells to other countries, like clothes, electronics, or food items.
services exports -: Services exports are non-physical products that a country sells to other countries, like software development, customer support, or financial services.
