SAN FRANCISCO: The growth of exports from India should not be dependant on a weak rupee and the country’s goods & services should stand “on their own legs on the basis of their quality”. The government is also soon going to set up a trade promotion body (TPB) on the lines of Invest India, with a target of reaching exports of $1 trillion in goods and another trillion dollars for services by 2030.
“I firmly believe that a strong Indian rupee will help the Indian economy. Our currency has shown greater resilience than many other globalcurrencies during the recent headwinds. The CAGR (compound annual growth rate) depreciation of the rupee in the past was in the range of 3. 25-3. 5%, which has now dropped to 2. 5%. Our exports should not depend on a weaker exchange rate,” commerce minister Piyush Goyal told TOI here after the ministerial meeting of the Indo-Pacific Economic Framework (IPEF).
The slowing down of economies in the West — clearly visible through “available on lease” signs on vacant stores even in prime downtown areas, empty rows of shelves in hypermarkets and missing weekend rush of shoppers — has severely affected demandfor exports from developing world. The slowdown, aggravated essentially by spiralling energy prices post-Covid, comes on top of broken supply chains and poses a twin challenge: To the developed world in terms of reviving their fortunes and for the developing ones to revive their exports.
India is pursuing free trade agreements with several countries, apart from being wooed by others like Switzerland to sign the same with them, and feels these FTAs will provide a push to exports and create jobs.
“These agreements can help grow trade with partner countries. We aim to be a $2trillion export market by 2030. International trade being a large part of GDP is a defining feature of all developed economies,” Goyal said. The FTA with the UK, that was earlier expected to be finalised by Diwali, could get a little delayed due to the nation being in a mourning period for Queen Elizabeth’s demise.
India sees a significant upside in trade with its biggest partner, the US. “There is a massive potential for increasing trade with US in every area, be it IT, auto parts, cars and electric vehicles. Sky is the limit due to our ability to provide cost effective goods and services,” Goyal said.