Steps like reducing costs of capital and power, comprehensive trade agreements and land reforms will help boost India's exports of goods and services to $2 trillion by 2030, according to a report by the PHD Chamber of Commerce and Industry (PHDCCI).

"New free trade agreement should be comprehensive as it will expand and offer diversification as India has a comparative advantage in the service sector," the report said. Such pacts will offer a more balanced opportunity for the country's competitive services sector, it noted.

It recommended schemes for 75 potential export products, including some chemicals and cotton, to promote shipments. The 75 products contribute around $222 billion, i.e., around half of India's total exports.

A cut in repo rate will lower lending rates, and that will reduce the cost of capital for businesses, leading to a rise in domestic demand and enhancing the competitiveness of producers in the domestic market and exporters in the global market, the report, titled ‘India's Emerging Export Dynamics: Vision $2 trillion Exports by 2030’, said.

Per unit charges of power are still significantly high and there a lack of adequate infrastructure, which needs to be upgraded to reduce logistic costs, it noted.

The government should focus on skill development of human resources and land reforms, which will decrease the complexities for acquiring land and will improve the ease of doing business, it suggested.

Emerging high-growth economics like the Netherlands, Australia, South Africa, Israel, Brazil, Indonesia, Turkey and Togo would enhance India's export growth, it added.

Fibre2Fashion News Desk (DS)

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