In the age of the changing world order, India will go beyond trade relationships to strategic partnerships, commerce and industry minister Suresh Prabhu said.
“Trade is about strategic partnerships. In this changing world trade, we need to find new edifice of strategic relationships,” Prabhu said Saturday at the Global Business Summit, organised by The Economic Times.
Noting that unprecedented situations are developing in the world, and global trade is facing a real headwind, he said the World Trade Organization (WTO) was being questioned.
“Now people are talking whether the WTO should be there or not and the efficacy of global trade,” Prabhu said.
India’s strategy is to increase exports through geography-specific and product-specific matrix to increase the market share, he said. “We are doing this for Africa, Latin America and the Middle East. While we benefit, we want to make sure that the global community (also) benefits,” he added.
While India is collaborating with West Asia for food products, diamonds are the focus area of partnership with Russia, he said.
“We are now working in partnership with Russia to import diamonds, which will give us access to raw material … With the Middle East, we are working on creating a supply chain where we will invest, they will invest and we will export it back to them. It is a win-win situation for all,” he said.
Further, his ministry is designing action plans to increase foreign direct investment inflows to $100 billion from $61 in 2017-18. “We have removed almost all sectoral restrictions. I have asked Invest India (the agency dedicated to the promotion and facilitation of investments) to identify those who can get that amount. I am personally talking to Fortune 500 companies and requesting them to come. We will make sure that we take it to a new level,” he said.
India has set a target for its services sector to have a 4.2% share in global services exports by 2022, from 3.3% in 2015. The share of services in gross value added, which was about 53% in India for 2015-16, is pegged higher for 2022 at 60%. Including construction services, it is estimated at 67%, compared with 61% in 2015-16.
Services have a huge potential to provide jobs at a massive scale, Prabhu said.
The Ministry of Commerce and Industry has identified 12 champion sectors and dedicated a fund of ?5,000 crore to help achieve their true potential. These are information technology & information technology-enabled services, tourism and hospitality, medical value travel, transport and logistics, accounting and finance, audio visual, legal, communication, construction and engineering, education, environmental services, and financial services.
The minister said services would grow, but not at the expense of manufacturing or agriculture.
“Services can grow only when two mainstream growth engines — manufacturing and agriculture — also grow at the same time. It will be well-diversified and qualitative growth,” he said.
It is only a matter of time before India grows into a $5 trillion economy from $2.5 trillion, he said.
Source :- Economictimes.indiatimes.com