Piyush Goyal: ‘$1 trillion exports in next 5 years to get to a $5 trillion economy doable’

The government is expected to “soon” come out with its credit scheme for exporters, which will enhance insurance cover up to 90 per cent from 60 per cent currently, the Commerce Ministry stated in a release following the minister’s statement.

Commerce Minister Piyush Goyal in New Delhi on Thursday. (Express Photo by Renuka Puri)

Commerce and Industry Minister Piyush Goyal Thursday urged states and exporters to study measures to boost the country’s exports to $1 trillion in the next five years to achieve the government’s vision of becoming a $5 trillion economy.

“A $5 trillion economy cannot be complete unless we once again get back to the 19-20 per cent export levels. So, we’re really looking at $1 trillion of exports in the next five years and that is something which is very eminently doable. It is not at all beyond imagination, but we need to dare to accept a large target,” he said here at the second meeting of the Board of Trade. “So, I would urge all of you to seriously start looking at what can be done to achieve $1 trillion of exports to boost the entire economy and ensure that we have our fair share (of the global export market),” he added.

The government is expected to “soon” come out with its credit scheme for exporters, which will enhance insurance cover up to 90 per cent from 60 per cent currently, the Commerce Ministry stated in a release following the minister’s statement.

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Read | Govt to soon release norms for offering forex credit to exporters at affordable rates: Piyush Goyal

“Export credit — we are very concerned — has fallen. I assure you that, very soon, we will come out with the contours of a very vibrant programme which will particularly support MSMEs and, more importantly, it will make available foreign exchange export credit … at very very competitive rates — something like sub-four per cent rates for foreign exchange credit,” said Goyal.

India’s exports crossed the half trillion-dollar mark at $537 billion in 2018-19, with goods exports at $331 billion and services exports at $205 billion, as per the Ministry.

While industries would have to increase domestic production and improve competitiveness, the central and state governments have to take measures to improve ease of doing business, decrease logistics cost and simplify regulatory procedures, said Goyal.

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According to him, India has a huge potential for exports due to the ongoing trade dispute between the US and China.

“We have a trade surplus of $17 billion with USA, while we have a trade deficit of $53 billion with China, added the minister and, for this, India needs to work on its strengths by exploring market access for agriculture and pharma products in different regions,” said the Ministry.

Goyal also said that the merger of banks will now enable them to disburse enhanced credit, raise their risk appetite and raise resources from the market, adding that Rs 70,000 crore will be released to public sector banks upfront. Additional lending and liquidity to the tune of Rs 5 lakh crore expected to benefit corporate, retail borrowers, MSMEs, small traders and exporters, will also be released, according to the Ministry release.