The Economic Survey 2018-19 called for implementation of recommendations made by a high level advisory group on boosting the country’s exports. The high level panel group, chaired by Surjit Bhalla, has recommended a host of measures and a road map for doubling India’s exports of goods and services to over ₹1,000 billion by 2025.
The key suggestions include lowering effective corporate tax rate, bringing down cost of capital and simplifying regulatory and tax framework for foreign investment funds.
“The High Level Advisory Group submitted its report in June 2019 on how India can enhance its exports. Its recommendations need to be studied and implemented where possible,” the survey, tabled in parliament, said on Thursday.
It said India’s share in global exports is so low that it should focus on market share. The country’s exports grew by 9 per cent to ₹331 billion in 2018-19.
“Where would the final demand for the large capacities created by high investment come from? The answer is exports. This is why an aggressive export strategy must be a part of any investment driven growth model,” it said.
Talking about free trade agreements, the survey said India has signed 28 bilateral/multilateral trade pacts with various country/group of countries. “In 2018-19, India’s exports to countries with which it has a trade agreement stood at $121.7 billion accounting for 36.9 per cent of India’s export to all the countries,” it said.
Similarly, the country’s imports from countries with which it has a trade agreement stood at $266.9 billion, accounting for 52 per cent of India’s imports from all the countries, it said.