Govt working to ensure export sector becomes self-sustaining: Piyush Goyal

GIFT City will play a pivotal role in powering India's exports to $2 trillion by 2030, and then onwards to up to $10 trillion that it envisages to see by 2047, Goyal said

India is aiming to achieve the $2 trillion export target by 2030 and in the process it is moving this industry out of the government support to make it self-sustaining and cost competitive, Union minister Piyush Goyal said on Saturday.

Addressing Infinity Forum 2.0 virtually at Gujarat Finance Tec-City (GIFT City), he said the International Financial Services Centre (IFSC) at GIFT City has become a lynchpin in propelling India's export-led growth.

GIFT City will play a pivotal role in powering India's exports to $2 trillion by 2030, and then onwards to up to $10 trillion that it envisages to see by 2047, said the Union Commerce and Industry Minister.

"During the next 2-3 decades we hope to see sustained, inclusive growth, during which we are confident of offering sustainable and inclusive development for every single person in the country. In that story, our international engagements will play a very important role," he said.

He said India's target of crossing a $1 trillion economy in the next three years, having $1 trillion of merchandise and $1 trillion of service--collectively $2 trillion of exports by 2030- will have a massive impact on the country's economy.

"This export-led growth will create jobs and work opportunities for youth, give a boost to 'Make In India', further opportunities to Start Up India vision, and encourage new innovators to come up with brilliant ideas," he said.

This will have a huge impact on India's macroeconomic fundamentals, with a stronger infusion to $600 billion foreign kitty, further strengthening its positioning both as a global economy and ensuring its fast-track growth, Goyal added.

"Towards that hand-holding, we yesterday allocated Rs 2,500 crore for interest equalisation to ensure that our small exporters, MSMEs particularly, continue to get export support in terms of interest equalisation to equate interest between Indian rates and international rates.

"But our approach has been that we are moving our export industry or sector more and more out of the clutches of government support to make it self-sustaining, to make it work on the strength of its own cost competitiveness, and also on the strength of high-quality goods and services that we offer to the world," he said.

Goyal said IFSC, in the coming years, will become a big source both for finance and insurance and other aspects of India's growth story.

"I am sure we can leverage Indian talent through the GIFT City to expand our exports manifold in the years to come," he said.

GIFT City can play a very important role in three areas -- global finance and accounting, export of educational services, and consultancy and advisory services, Goyal added.

"As India is poised to power the world's economy for decades to come, GIFT City will provide a pivotal role (and) will power India's exports for our first threshold of $2 trillion by 2030, and then onwards to take it up to $10 trillion that we envisage to see by 2047," he added.