‘Manufacturers, exporters need to diversify to increase global trade’
Indian manufacturers and exporters should diversify more and become part of regional multi-lateral trade pacts to boost shipments of their products globally, India's top envoy in Singapore has said. “It is for the business community of India and Singapore to identify more opportunities and further increase trade flows,” India's High Commissioner Vijay Thakur Singh told some 200 delegates at the 'India-Singapore Trade: Challenges and Opportunities' business forum. Underlining the wide range of initiatives and thrust of India's foreign trade policy, Singh called on the manufacturers and exporters to diversify and be part of the regional multi-lateral trade pacts to boost shipments of their products globally. Singh also reiterated the government's target of further increasing shipments of merchandise and services as there are plenty of opportunities to do so. “The trade policy aims to increase the share of Indian exports in world markets to 3.5% by 2019-2020, doubling it in five years,” Singh said. In value terms, the increase in exports would be approximately $900 billion by 2019-2020, almost double from $461 billion in 2013-14. Some 175 Indian manufacturers and exporters are showcasing their products at the Singapore International Indian Shopping Festival being held from September 24-27. Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations, also called on the manufacturers and exporters to adopt strategies to further boost their exports. Stressing that India's direct global exports were growing, he said there are still more opportunities to be part of regional trade groupings and pacts, especially benefiting from the lower taxes and incentives of landing products in the international markets. Sahai suggested that Indian manufacturers and exporters should also consider Singapore for shipments to markets in the United States, Canada, Mexico, Peru, Chili, Australia, New Zealand, Japan and South East Asia. Singapore can be a centre for refining and re-packaging of merchandise followed by shipments to global markets, he stressed. “Although India has a wide range of exports to these markets, routing it through Singapore will create additional opportunities. It will be advantageous in landing lower tax product in export markets,” said Sahai. He said there will be more opportunities through multi-lateral trade pacts such as the proposed Trans Pacific Partnership (TPP) that is designed to cover countries in the Pacific Rim. It would be good for Indian manufacturers and exporters by adding value to their products in Singapore and be part of the export routes that would emerge from TPP-type pacts, he pointed out.
September 26, 2015 | 2:22pm IST.