GS Paper - 3 (Economy)

Prime Minister spelt out a strategy to boost export of goods from India, a move aimed at lifting a sagging economy amid the outbreak of the pandemic when Interacting with Heads of Indian Missions abroad and stakeholders of trade and commerce virtually.

What

  1. PM pointed out four factors that are very important for accelerating outward shipments from India -- increasing domestic manufacturing, ironing out problems of transport, logistics, need for the Centre and state governments to walk shoulder to shoulder with the exporters and expanding the international market for Indian products.
  2. The larger idea of the interaction aimed at encouraging stakeholders towards expanding India’s export potential and utilizing the local capabilities to fulfil the global demand.
  3. Towards this, the Prime Minister said there is a need for diversification of India’s export basket as well as identification of new products that can be exported and relevant markets for such items and prepare strategies for that.

Flashback

  1. Presently, India’s export basket has been dominated by products with engineering goods, petroleum products, gems and jewellery, pharmaceuticals being the top items.
  2. At present our exports are about 20 percent of GDP. Considering the size of our economy, our potential, the base of our manufacturing and service industry, it has the potential to grow a lot, PM said, adding that India needs to have a seamless and high quality supply chain and low-cost logistics to boost exports.
  3. Robust exports can boost economic growth at a time when private consumption as well as investment have been tepid due to the disruption caused by the pandemic.