Context:

The government is working on a five-year action plan to achieve $2 Trillion in Exports by 2030.

More on the news 

• The Department of Commerce under the Ministry of Commerce has initially proposed a 100-day plan, which later extends to provide a strategic roadmap for long-term trade growth.
• The Department has engaged with various stakeholders, including export promotion and industry bodies, to gather inputs for the action plan. 
• Final touches are being made before the five-year action plan is publicly released.

About the 100-Day Agenda Road Map

Under the 100-day agenda, the Commerce Department plans to: 

• Launch the 'Trade Connect' e-platform to facilitate business for exporters.
• Finalize standard operating procedures for negotiating FTAs (Free Trade Agreements).
• Amend SEZ (Special economic zone) rules to make them more attractive.
• Operate e-commerce hubs and implement other measures to boost exports.

Special Economic Zone (SEZ)

• SEZ is an area with favourable economic regulations, including tax incentives and lower tariffs etc, designed to boost economic growth.

Basic Objectives of the Five-Year Action Plan

• Expansion and Diversification of Products and Markets by broadening the range of export products and targeting new markets.
• Supporting Micro, Small, and Medium Enterprises (MSMEs) in exporting goods.
• Growth of E-Commerce by promoting online trade and e-commerce activities.
• Enhancing the export of services.
• Improvement of Logistics and Ease of Doing Business by Streamlining logistics and reducing bureaucratic hurdles.
• Reducing Transaction Time and Costs involved in export transactions.

Export Targets

• The ultimate goal is to reach $1 trillion in goods exports and $1 trillion in services exports by 2030. 
• Increasing India's modest share in global trade, which stood at 1.8% for goods exports and 2.8% for imports in 2023, is also a priority.

Challenges Regarding Diversifying Exports 

• A significant challenge for India's export growth is diversifying markets and products. 
• Despite consistent growth in exports to new markets like the Netherlands, Saudi Arabia, Brazil, and Indonesia, further diversification is needed.

Current Export Performance

• In the last fiscal year (2023-24), global demand slowed due to geopolitical tensions, causing India's goods exports to decline by 3% to $437 billion, while service exports grew by 4.9% to $341.1 billion. 
• However, the current fiscal year (2024-25) shows promise, with goods exports rising by 5.84% to $109.96 billion in the first quarter.
• The USA and UAE have been the top export destinations for over 15 years, accounting for about 25% of exports in 2023-24.

Initiatives to expand Markets and Products  

• The govt aims to increase exports to Central Asia, Africa, and Latin America and to countries with which Free Trade Agreements (FTAs) are being negotiated, such as the EU, the UK, and Oman. 
• The government is advancing various reforms aimed at boosting high-tech exports, such as telecom products and mobile phones, to match the growth seen in traditional exports like petroleum products, gems, and jewelry.