The Director General of Foreign Trade (DGFT) chief, Lav Agarwal urged Indian industry associations to move beyond awareness-building around government export schemes and free trade agreements (FTAs) and work with the government to convert them into actual exports, including by mentoring potential exporters at the district and cluster level.
“Through the trade agreements, India has opened up markets across the globe and created opportunities that can make Indian industry more competitive. The challenge now is to translate these FTAs into action on the ground,” Agarwal said at the Confederation of Indian Industry’s National Manufacturing Conclave.
His comments come as India has put two FTAs with the UK and Oman into force so far in the current financial year and remains on track to implement another FTA with New Zealand next month.
Citing the India-UK agreement, Agarwal highlighted that Indian industry did not show the same enthusiasm in understanding market access as UK industry did.
He said the UK government and industry representatives held several meetings with the DGFT to understand the market access available after the agreement, while comparatively fewer Indian industry representatives sought similar discussions.
“We are here to work with all of you. We want to create a framework so that whatever market access an agreement offers does not only remain on paper,” he said.
Agarwal urged manufacturers to factor trade into their expansion plans and seek integration into global value chains.
Industrial development ultimately needs to translate into trade, either domestically or globally, he added.
The official also urged industry associations to take the 11 components of the government’s Export Promotion Mission to the grassroots level.
The mission, approved by the Union Cabinet last November, covers areas including export finance, market intelligence, logistics efficiency, inland export support and compliance with international trade agreements.
“Government policy alone cannot lead to the required results. What we need is a true partnership, and a true measure of success would be how those initiatives are adopted by the industry at large,” Agarwal said.
He said the DGFT had funds available under the Export Promotion Mission.
Agarwal suggested that combining the Export Promotion Mission with the Districts as Export Hubs initiative could create a more effective export ecosystem.
The government’s Districts as Export Hubs initiative aims to turn every Indian district into a centre for global trade.
Agarwal said the concentration of exports across a small number of states and districts showed the potential for significantly wider participation.
Currently, 10 states account for around 85 per cent of India’s total exports, while 15 states account for around 95 per cent, he said.
At the district level, 10 districts contribute around 35 per cent of total exports. Jamnagar alone accounts for around 8.29 per cent, while Kanchipuram and Pune contribute around 5.98 per cent and 6.57 per cent, respectively.
“Every district which has the potential to actually become a district as an export hub,” Agarwal said, calling on industry associations to mentor prospective exporters, including micro, small and medium enterprises (MSMEs) and start-ups, and help translate more than 500 district export action plans into actual exports.
He said awareness workshops and seminars alone would not be sufficient to create exporters.
Industry associations need to work with the government on an end-to-end framework covering mentoring and hand-holding of potential exporters, he said.
