While speaking at the 31st Annual General Meeting, he said that the bilateral trade between India and US has been the highest in the couple of years and is aimed to increase multifold in the coming years.
Commerce & Industry Minister Piyush Goyal said that India-US partnership is at a ‘defining stage’ and the two countries will continue to work towards diversifying and deepening trade and investment ties for mutual growth and prosperity. While speaking at the 31st Annual General Meeting, he said that the bilateral trade between India and US has been the highest in the couple of years and is aimed to increase multifold in the coming years. Goyal also added that with the increasing eminence and recognition of India across the world, India’s target of US$2 trillion exports by the year 2030 is doable. Madhavi Arora, Lead – Economist, Emkay Global, while maintaining that a decade is too long a period to take a call on the target, said, “In the last one and a half years, the government of India has been taking various initiatives to push exports. India has renegotiated the terms of the Foreign Trade Policy and reintroduced the FTP 2023. Additionally, India is also working parallely to create a system which is going to support the manufacturing base. We have to really work towards deepening the foreign direct investment inflows in manufacturing and India’s next focus for FDI inflows would be on manufacturing.” She reiterated that while the government has taken up many initiatives to push exports, they are in a nascent stage and yet to give returns.
Piyush Goyal announced the FTP 2023 in April 2023 and announced the four pillars of the new policy as: incentive to remission, export promotion through collaboration, ease of doing business and emerging areas. “India’s overall exports, including services and merchandise exports, has already crossed US$ 750 billion and is expected to cross US$ 760 billion this year,” he had said.
According to a survey by PHD Chamber, exporters have also appreciated the recent focus on the trade promotion measures such as Remission of Duties and Taxes on Exported Products (RoDTEP), and Trade Infrastructure for Export Scheme (TIES), RoSCTL Scheme which are going to help exports to become more robust in the coming times.
In terms of FDI equity inflows in the manufacturing sector, it has increased by 76 per cent in FY 2021-22 ($21.34 billion) compared to previous FY 2020-21 ($12.09 billion), according to Invest India. However, it maintained that the top 5 sectors receiving highest FDI equity inflow during FY 2021-22 are Computer Software & Hardware (24.60%), Services Sector (Fin., Banking, Insurance, Non Fin/Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other) (12.13%), Automobile Industry (11.89%), Trading 7.72% and Construction (Infrastructure) Activities (5.52%). India is, meanwhile, working towards attracting more inflows in the sector with initiatives like PLI scheme, etc. The commerce minister said that the reform processes undertaken by the government in the last 9 years will turn India into a global manufacturing hub.
India-US bilateral trade relations
While India continues to work towards its target to become an export-oriented economy from a current account deficit economy, its increasing bilateral trade ties with the US has been helping in the pursuit. According to the provisional data of the commerce ministry, the bilateral trade between India and the US has increased by 7.65 per cent to $128.55 billion in 2022-23 as against $119.5 billion in 2021-22.
Piyush Goyal, during his address, also cited the examples of many Indian companies operating in the US and vice versa and highlighted how significantly they are contributing to each other’s economy. He also encouraged companies from the US to establish their base in India and expand to newer frontiers like the markets of Africa and South-East Asia. “India offers assured prosperity and growth to the US companies with the recent policy reforms undertaken with focus on the fundamental macroeconomic parameters, affordable labour costs, inclusive and sustainable development and increasing ease of doing business,” he said.
The commerce minister said that the businesses in both countries can work together to expand to the next level in many sectors like defence, manufacturing, pharmaceuticals, textiles, engineering products, auto components, electrical products, agricultural products, etc. on the merchandise side while IT, accounting, business processes outsourcing, research & development, tourism, etc. on the services side. While maintaining that many US corporations have Indian or Indian-origin CEOs, Goyal said that the technical and managerial talent offered by India to businesses around the world cements India’s relationship with the world.
https://www.financialexpress.com/economy/india-us-bilateral-trade-highest-in-past-few-years-will-help-indias-2-tn-exports-target-by-2030-says-piyush-goyal/3076202/
