Though India’s export basket has high complementarity with the import baskets of the United Kingdom, France, Germany, Italy, Belgium and Indonesia, these countries account for a low share of India’s total exports now, reflecting untapped potential markets, an analysis of the trade complementarity index in the paper noted.
The paper, titled ‘Trade: The Fulcrum of India’s Growth’, emphasises the critical role played by trade in enhancing the welfare of any economy.
Focus on logistic infrastructure is needed to reduce costs and boost domestic competitiveness. Continued and targeted policy action remains the key to eliminating the domestic structural challenges and leveraging the full potential of investments, the paper noted.
Incentivising private sector participation could hold the key to promoting domestic research and development and move up the value chain, it said.
Correcting duty anomalies is crucial to attracting investments in the manufacturing sector and improving India’s export competitiveness.
Sectors that are high export-intensive or have a high export potential must be prioritised while correcting the inverted duty structure anomaly, it suggested.
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