The Modi government has set the yearly exports target at $900 billion by 2020, which is nearly twice the country’s current export performance.
Announcing the much-delayed Foreign Trade Policy on Wednesday, the Centre said it aims to raise India’s share in global trade over the five-year period of 2015-2020 to 3.5 per cent from the 2 per cent at present.
Releasing the policy document, Commerce and Industry Minister Nirmala Sitharaman said that it was aligned with Prime Minister Narendra Modi’s pet initiatives, the Make in India, Digital India and Skills India.
“To ensure stability and consistency, the Government gives its commitment that the five-year policy will not be altered annually as has been the practice… It will be evaluated through a mid-course review after two and half years,” Ms. Sitharaman said.
Commerce Secretary Rajeev Kher said that the tariff cuts being announced for some raw material and intermediary product imports would appear ‘threatening’ to Indian players in those areas but lower tariffs were essential for intermediate goods so that Indian manufacturing can become more competitive and further integrate with global supply chains.
He also said that for the first time the country’s position on global trade pacts was being addressed in the policy.
India has not been invited to join pacts such as the U.S.-led 12 country Trans-Pacific Partnership (TPP) and is not in a position to join, partly because tariffs are not competitive, he said.