FIEO Lists 36 Items for Annual $22bn New Exports

Out of the top 100 products of India’s exports basket at 6 digit tariff lines, FIEO has identified 36 products using the parameters of

a) Positive Revealed Comparative Advantage (RCA)

b) Higher exports growth than India’s average exports growth in 2010-2014 (Calendar year wise) in such products.

c) Higher world-wise import growth than World’s average imports growth in 2010-2014 (Calendar)

The 36 products showed a CAGR of 21% in India’s exports during 2010-14 (as against overall exports CAGR of 9.56 %). The CAGR of World’s Imports for such products was 16.63% in the same period (as against overall global imports CAGR of 5.3 % in the same period).

The total exports of these 36 products from India in 2014 (Calendar year) was US$ 45.58bn, close to 14 % of our total exports. The World Imports for these 36 products in 2014 stood at US$ 700.45bn. India’s share in World Exports for these 36 products was thus 6.5% in 2014 as against our overall share of about 1.7% in World Merchandise Exports.

FIEO expects even the current CAGR of over 16% will take their imports to US$ 1100bn by 2017. If India can increase its share from 6.5% to 10 % in next three years, we can take our exports from US$ 45.58bn to over US$ 110bn in next 3 years said FIEO. An additional US$ 65bn to the exports sector can be added by these 36 products at 6 digit tariff lines observed FIEO.

FIEO suggested for consultation with products specific Export Promotion Councils and other organisations to understand the supply side challenges in meeting such targets and devising product specific strategy or a product market matrix strategy to boost exports.