Amid concerns over stagnation of exports growth, Vice President Hamid Ansari today emphasised on the manufacturing sector especially small and medium enterprises to spur the country's shipments.
He said the Make-in-India campaign was just a beginning and more concrete steps needed to be taken to achieve the desired objective.
"Emphasis on the manufacturing sector, especially SME will be critical to India's export growth," Ansari said.
He pointed out that after success in higher export growth between 22 and 30 per cent (though there was a small blip in 2010) in the past, in 2013 and 2014 the export growth rate fell to 1.2 per cent.
"This trend continued in 2015 with exports growing at an average rate of 2.2 per cent year to date," he told the 184th annual general meeting of Calcutta Chamber of Commerce.
The Vice-president remarked that increasing exports would require higher price competitiveness than ever before, especially if the global growth remains muted.
UNCTAD has estimated that one percent shrinkage of global GDP leads to 1.88 decline in India's export, while 10 per cent reduction in prices will lead to only 5.4 per cent increase in exports.
Mega trade pacts like Trans-Pacific partnership and the Regional Comprehensive Economic Partnership and competitiveness will be be key to export growth, Ansari said.
He shared UNIDO's Competitiveness of Industrial Production (CIP) data.
"While, India's CIP score has improved from 0.04 in 2000 to 0.07 in 2010. In the same period comparing with China it improved from 0.16 to 0.33," Ansari said.
About West Bengal, Ansari said the state under its dynamic chief minister is fast becoming an attractive destination for investment and doing business in it today is easier, simpler and faster.
