Suresh Prabhu bats for new markets for more exports

Minister of Commerce and Industry Suresh Prabhu on Wednesday said India's potential for exporting was more than what it was exporting now and it was important to explore new markets to give a boost to it.

"Our potential for exporting is more than what we are exporting now. If we do not export, then our GDP growth will decrease," Prabhu told ANI.

He further said the government was trying to bring transparency in the export sector.

"We are also trying to make the custom-related formalities digital. It is important to do market research and explore new markets to increase the export," he added.

Earlier on Tuesday, the Ministry of Commerce and Industry released the mid-term review of the Foreign Trade Policy (FTP) 2015-20, with focus on improving the situation of the export and import sector, thereby paving way for increase in job creation.

To this regard, it was reported that export-related reforms under the ambit of the Goods and Services Tax (GST) were incorporated in the FTP. Also, merchant exporters have been permitted to pay nominal GST of 0.1 per cent for procurring goods from domestic suppliers for export.

The report released today states focusses on exploring new markets and products, leveraging the benefits of the GST, enhancing ease of trading across borders, and increasing farmers' income through a focussed policy for agricultural exports.

Further discussing about high India-China trade deficit, the commerce and industry minister said they had formed a task force to look into the matter and that they would try to dissolve the issue - sector by sector.

"The trade relation between China and India cannot continue like this. The trade deficit should be low and even the Chinese officials have agreed with our decision. I am happy to say that we have formed a task force in which industrialists and officials of both the countries will be there and will have a discussion - sector by sector - to decrease the trade deficit," he said.