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Suresh Prabhu says 40% of country's GDP to come from exports by 2025

Exports constitute only around 18 per cent of the $2.6-trillion GDP, which is currently the fifth largest in the world after the US, China, Japan, Germany and Britain

Press Trust of India  |  Mumbai 

Suresh Prabhu, Devendra Fadnavis
Maharashtra Chief Minister Devendra Fadnavis speaks with Union Minister for Commerce and Industry Suresh Prabhu at Magnetic Maharashtra Convergence 2018 in Mumbai | Photo: PTI

The Modi government will soon come out with a comprehensive strategy to increase the share of global trade to 40 per cent of the gross domestic product (GDP), which is expected to touch $5 trillion by 2025, commerce minister said on Monday.

At present, exports constitute only around 18 per cent of the $2.6-trillion GDP, which is currently the fifth largest in the world after the US, China, Japan, Germany and Britain, while the country's share in global trade is paltry and is under 2 per cent only.

The more than doubling of shipments will demand that the massively increase the share of manufacturing in the overall basket, which is around 14 per cent. Though the previous government had set a target of taking this to 25 per cent of by 2020 has come a cropper and same is the fate under the present regime.

Addressing the global investor summit, Prabhu said, "exports is the driving force of our growth strategy. We are coming out with a comprehensive strategy to increase the share of global trade to 40 per cent of GDP, which is likely to touch $5 trillion."

Of the $5-trillion expected to be achieved by 2025, he expects $3 trillion to come from the services sector, while $1 trillion each to come from the manufacturing and agriculture sectors.

The minister also urged the business community to come up with a proper business plan to increase exports.

According to the (Fieo), the current share of exports in GDP is only 18-19 per cent.

"We are in the process of preparing a new strategy for diversifying our export basket to ensure that we export to new markets and ship out new products. For that, we are preparing a marketing strategy," the minister said, adding the focus would be on attracting foreign investment and engaging the global community.

Prabhu informed that government has called a meeting of all state ministers to discuss on the export strategy. Currently, just four states-Maharashtra, Tamil Nadu, Gujarat and Karnataka contribute almost 70 per cent of exports.

"We have decided to support the states to increase their exports. Participation of all the states is very critical to achieve the target," he said.

Prabhu lauded Maharashtra's efforts to become one trillion-dollar by 2025, and said "as an industry leader can play bigger role."


Prime Minister Narendra Modi while inaugurating the summit last evening had said would become the country's first trillion-dollar economy, by 2025.

The state has been the largest weighting in the GDP for long at around 16 per cent of the national GDP.

First Published: Mon, February 19 2018. 18:53 IST
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