India targets 12% annual merchandise export growth for $1tn vision - DGFT's Santosh Sarangi

The Indian government has set an ambitious target of achieving a total export value of USD 2 trillion by the year 2030, with an equal distribution of USD 1 trillion each in merchandise and services.

Santosh Sarangi, an IAS officer and the Director General of the Directorate General of Foreign Trade in New Delhi, part of the Government of India, emphasized that India’s current exports stand at USD 450 billion. To reach the milestone of USD 1 trillion in exports, the nation needs to sustain an annual growth rate of 12%. Furthermore, in the services sector, a consistent average growth rate of 16.6% per year is necessary. These remarks were made during the World Trade Day 2023 event held in Bhubaneswar. The event was jointly organized by World Trade Centers in Mumbai, Bhubaneswar, Jaipur, and Goa, focusing on raising awareness about the impact of international trade on regional growth and the state economy.

Addressing the event, Sarangi underscored the potential for growth in Odisha’s export sector, particularly in Pharmaceuticals and Plastics. He highlighted the need to bridge the gap between major exporting cities and interior regions of the state, like Sambalpur, Bolangir, and Raygada. To facilitate this, the Directorate General of Foreign Trade (DGFT) plans to collaborate with the State Government to organize workshops centered on e-commerce, providing comprehensive guidance on aspects such as on-boarding and payment gateways. Sarangi also mentioned the facilitation of Export Incentives like RODTEP and the signing of Free Trade Agreements (FTAs) as measures to enhance the export environment.

Sarangi emphasized the potential role of ‘World Trade Centers’ in aiding state exporters by serving as a connection between the central and state governments, ultimately elevating Odisha’s trade presence on the global stage.

Saswat Mishra, an IAS officer and the Principal Secretary of the MSME Department in the Government of Odisha, highlighted digital initiatives undertaken by the state to support exporters. He announced the commencement of Air Cargo services in September, aimed at boosting exports from Odisha. Mishra also mentioned an upcoming Stakeholder Meeting, where local exporters will engage with officials from Indigo Airlines to discuss various export-related matters.

Petula Thomas, CEO of the Indo-Australian Chamber of Commerce, emphasized potential trade collaborations between India and Australia across sectors like metals & mining, food processing, and educational services. She emphasized the role of World Trade Centers as platforms for enhancing bilateral trade relations.

Vijay Kalantri, Chairman of the World Trade Center Mumbai, stressed the pivotal role of MSMEs in India’s goal of becoming a five trillion dollar economy. He outlined the potential for integration with organizations like ASEAN, BRICS, and BIMSTEC, as well as growth opportunities in sectors such as IT, ITes, and Pharmaceuticals.