Sector wise strategy for Export Promotion

Engineering/Electronic/Electrical and allied:

The strategies for this sector include support for SMEs to modernize, accreditation of testing laboratories in India by overseas agencies, R&D, other measures to effectively counter NTBs in the form of TBT conditions, brand promotion, providing warehousing facilities in overseas markets, etc. A three pronged export marketing strategy has been suggested for automobile component exports, namely, export through Original Equipment manufacturers (OEMs) for their global sourcing requirements, export to tier 1 manufacturer as a part of their international supply chain. The strategies also include focusing on auto sector in some SEZs and automobile component centers. Electronics hardware sector can be promoted in three ways, namely, hardware-software combination, integrating local and export production, and by massive investments. Development of India as an off-shore production center for electronic components / equipment required for MNCs through low duties and SEZ model for IT hardware, promoting exports of instruments and repaired products through SEZs etc. are the other strategies for this sector.

Textiles sector:

The main strategies for this sector include increased investment in key areas infrastructure development by setting up ‘Apparel Parks’ and Textiles Centers infrastructure Development Schemes. Brand Promotion and market assistance schemes etc.

Gems & jewelry:

The main strategies for the sector include forgoing strategic alliances with producers of roughs and retailers of jewelry and efforts to make India a grading / trading centre for processed diamonds, forward integration into gem stone jewelry moving towards exports of jewelry etc.

Chemicals and allied sector:

The main strategies for this sector include setting up Comprehensive Chemical Estates (CCEs), enhancing awareness of Indian herbal items, focusing on branded generic pharmaceutical products out of patent regime, promoting exports of cement by lowering input costs etc.

Agriculture & allied sector:

The main strategies for this sector include establishing Agro-Export Zones, establishing a supply chain management and export certification program for basmati rice, cold chain system and innovative packaging for floriculture exports, pack houses/value added centers for mangoes, market oriented approach for tea and shift in focus from bulk tea exports to value added packaged tea exports, focus on export of value added forms of natural rubber and export of rubber wood. Judicious mix of strategy relating to export of Arabica coffee vis-à-vis Robusta depending on market preference, promoting use of better handling techniques on fishing vessels and adoption of food safety and quality systems in the case of marine exports etc.

Leather and leather manufactures:

The strategy for sector includes a re-look at our policy for tanning sector, encouraging alliances with overseas exporters in the case of leather garments, bringing the leather complexes under SEZ scheme, encouraging FDI in key sectors like footwear components, tanning and designing, focusing on items in high demand in the case of leather footwear and new items leather upholstery, modernization in footwear components, etc.

Other items:

The main strategies for these items include setting up toy cities and special focus in SEZs for toys, fresh investments in sports goods and manufacture of non-traditional sports goods, focus on China for iron ore exports, lowering costs for exports of minerals and ores etc.

Export Projections:

Based on historical trends, estimates of growth rate have been made to achieve 1 per cent share in world trade in 2006-07. A compound growth rate of 11.9 per cent for the next five years is needed to achieve around 80.48 billion dollars which forms 1 per cent share in world trade.

Institutional Mechanism:

An institutional mechanism is being set up to monitor the implementation of the strategy. An action Committee under the Commerce Secretary with the Economic Adviser as the nodal officer and including a core group of senior officers, representatives of major export promotion bodies and representatives from academia shall ensure that resources are committed to achieve goals and provide the dynamic track against which progress can be measured.

A Market Intelligence Unit is proposed to be set up which will help this Action Committee.

All commodity divisions and territorial divisions of the Department of commerce along with the EPCs / CBs and Indian missions abroad will take steps to concretize the policies suggested in this strategy document.

If the strategy outlined in the document can be implemented it should be possible to achieve if not exceed India’s current share in world exports.