India has the potential to significantly boost its exports and manufacturing by pursuing trade agreements with specific G20 member countries and expanding its export markets to regions like Brazil and Mexico, according to the Chairman of the CII national committee on EXIM, Sanjay Budhia. He emphasised that capitalising on opportunities within the G20 is crucial for India’s economic growth and global influence.
Budhia pointed out the importance of diversifying India’s export destinations within the G20, not only relying on traditional partners like the United States and the European Union but also exploring emerging markets like Brazil, South Africa, Indonesia, and Mexico.
Trade pact advantages
He highlighted the potential benefits of negotiating and implementing trade agreements and bilateral deals with G20 countries, which can reduce trade barriers and regulatory obstacles, making it easier for Indian businesses to access foreign markets. Furthermore, he suggested that fostering collaborations and partnerships in digital technology, IT services, and e-commerce with G20 nations could boost exports and foreign investment.
Boosting SME exports
Budhia stressed the significant role of small and medium enterprises (SMEs) in India’s economy and recommended providing support and incentives to help them expand their export capabilities. He noted that India’s G20 presidency is working on strengthening economic ties with member countries to increase exports and attract foreign direct investment.
He pointed out that G20 countries collectively account for a substantial portion of global GDP and trade, offering India a significant opportunity to expand its trade and investment. Additionally, focusing on emerging economies within the G20, such as Brazil, South Africa, and Indonesia, could provide untapped opportunities for trade and investment, reducing India’s dependence on a few countries and enhancing its resilience in global trade.
The G20 consists of 43 members, including 19 individual countries, the European Union (27-member group), and some double-counted EU countries. In 2022, G20 countries represented 64 per cent of India’s merchandise exports and 52.4 per cent of its imports. India’s leading export destinations within the G20 included the US, the EU, China, the UK, Turkiye, and Saudi Arabia. Its major import suppliers included China, the EU, Saudi Arabia, the US, Russia, Australia, Korea, and Japan.
