News Brief
How Will India’s Share In Global Trade Double From The Current 2 Per Cent?—Here's What CII Chairman Said On Boosting India's Export
(Representative Image)
To significantly boost its share in global trade from the current 2 per cent to more than double, India must focus on deeper integration into global value chains, enhancing digital trade infrastructure, and strengthening the competitiveness of its MSMEs, according to the Confederation of Indian Industry (CII).
Sanjay Budhia, Chairman of the CII National Committee on EXIM, emphasized the chamber’s commitment to partnering with the government to address key challenges hindering manufacturing and export growth. “The journey will require deeper integration into global value chains, enhanced digital trade infrastructure, and a focus on building the competitiveness of MSMEs,” he stated.
To unlock India’s export potential, Budhia proposed several measures:
1. Centralised Digital Portal for Trade Circulars
A common online platform for issuing circulars related to various ports and trade locations can simplify operations, ensuring better communication and efficiency.
2. Adopting Global Best Practices
Implementing the Customs Authority on Advance Rulings (CAARR) Regulation, 2021, could reduce global trade costs and bring clarity to duty liabilities. This approach aligns with practices in developed nations, promoting ease of doing business.
3. Streamlining Refund Processes
This step would address common issues like Double duty payments caused by Customs EDI system errors, Refunds for duties deposited in error or excess payments, and Clerical errors, short shipments, and partial shipments.
4. Leveraging Similar Tax Structures
India’s trading partners, including the European Union and ASEAN, have VAT-based tax systems, making it easier for Indian businesses to engage in cross-border transactions. Aligning tax practices with these markets could enhance trade efficiency and foster partnerships.
5. Building Competitiveness of MSMEs
Budhia underscored the importance of MSMEs in India’s export growth, calling for targeted support to improve their global competitiveness. Strengthening MSMEs through financial, digital, and policy interventions will ensure they can seamlessly integrate into global value chains.
These steps, combined with modernizing trade infrastructure and aligning with global best practices, will not only boost India’s share in global trade but also reduce trade costs and improve operational efficiency. Such efforts are essential for positioning India as a leading player in the global marketplace.
