In a plan reflective of India’s ambitious economic goals, the commerce Ministry has embarked upon a meticulous strategy aimed at identifying the pivotal sectors, clusters, and infrastructural prerogatives essential to catapult the nation towards a staggering $1 trillion in merchandise exports by the year 2030. Senior government officials underscored the strategic endeavor’s urgency during a recent conference organized by the Confederation of Indian Industry (CII) on logistics.
The thrust of the initiative comes amid an era where sustainability has taken center stage in global commerce. Just a day prior to the announcement, the European Parliament cast its vote in favor of an innovative law intended to root out forced labor and environmental harm within corporate supply chains. By a considerable majority, EU lawmakers passed the Corporate Sustainability Due Diligence Directive (CSDDD) into effect as reported by Reuters. This raises the ante for countries like India, whose economic transactions with Europe—and specifically exports of iron, steel, and aluminum—are substantial. With over a quarter of such exports directed to the EU, Indian industries could be staring at a notable surge in costs, estimated to hike up to 20-35%, triggered by the previously instated carbon border adjustment mechanism (CBAM).
Director General of the Directorate General of Foreign Trade, Santosh Sarangi expressed at the conference, “In most major economies, sustainability issues will be a major concern. So how do we reduce our carbon footprint and how do we gear up our entire infrastructure to sustainably move goods and packaging is something that our business and trade needs to work on.”
Targeting intricacy beyond mere financial figures, the ministry is joining forces with the Asian Development Bank (ADB) in discerning the geographical and sectoral genesis of the projected $1 trillion exports. This is deemed an elemental process in plotting the requisite baseline study, understanding and bridging the extant gaps, and enhancing infrastructural capabilities, elaborated Anant Swarup, Additional Secretary in the commerce and industry ministry. He stressed, “That is very critical for us. Because unless we know about the clusters, and ports or airports from where this $1 trillion of exports and $1.5 trillion of imports is going to happen, we would not be able to do a baseline study to identify the gaps which exist and then enhance our infrastructure capabilities.”
Echoing this sentiment, Sarangi signaled the imperative need for India to weave more tightly into global supply chains (GVCs), which currently facilitate around 70 percent of worldwide trade. He noted that infrastructure at ports and airports must be significantly bolstered if India is to handle the anticipated $2.5 trillion worth of exports and imports.
The challenge is daunting: Sarangi’s outline indicates that by 2030, Indian ports must be equipped to handle an extra 2,000 million tonnes of goods, while railways should be prepared to carry an additional 338 million tonnes. Airports are not to be left behind, earmarked to expand for an additional 5 million tonnes of goods movement facility.
Confronted with these formidable tasks, officials maintain a resolved stance that, while the challenges are considerable, they are far from unreachable. In this spirited journey, the blueprint is set, and the nation’s gears are in motion to edge India closer to its $1 trillion dream, against the backdrop of an increasingly environmentally conscious global market. The strategy must not only encompass growth but sustainability, ensuring that India’s economic milestones advance hand-in-hand with international standards and responsible trading practices.
