Trade pacts with G20 member countries can help India boost exports: CII EXIM panel chairman
India should diversify its export markets within the G20 countries, Budhia, who is also Managing Director of Patton Group, said.
Negotiating trade pacts with certain G20 countries and diversifying exports to regions like Brazil and Mexico could help India boost outbound shipments and manufacturing in the years to come, Chairman, CII national committee on EXIM, Sanjay Budhia, said on Wednesday.
He said that tapping into opportunities in G20 countries is crucial for India's economic growth and global influence.
India should diversify its export markets within the G20 countries, Budhia, who is also Managing Director of Patton Group, said.
He added that while traditional partners like the United States and the European Union remain important, exploring emerging markets within the G20, such as Brazil, South Africa, Indonesia, and Mexico, can open new avenues for Indian goods and services.
"Negotiating and implementing trade agreements and bilateral deals with G20 member countries may be helpful to tap potential between India and G20 countries. Such agreements can reduce trade barriers, tariffs, and regulatory hurdles, making it easier for Indian businesses to access foreign markets," Budhia said.
He also said that focusing on collaborations and partnerships in digital technology, IT services, and ecommerce with G20 nations can lead to increased exports and foreign investment.
"SMEs play a significant role in India's economy. Providing support and incentives to SMEs (small and medium enterprises) to expand their export capabilities can lead to increased exports to G20 countries," he said, adding India's G20 presidency is helping strengthen economic ties with the member countries in terms of increasing exports and attracting foreign direct investment.
"India's trade and investments with the G20 countries is likely to grow significantly in the coming years. India is a rising economic power with a large and growing market, and the G20 countries are some of the world's largest economies," he said.
Further, he said that the G20 countries account for about 85 % of global GDP and 75 % of global trade and this means that India has a significant opportunity to increase its trade and investment with these countries.
"Emerging economies within the G20, such as Brazil, South Africa, and Indonesia, offer untapped opportunities for trade and investment. These efforts will reduce India's dependence on a few countries and enhance its resilience in global trade," he added.
G20 has 43 members and not 20 countries. These include 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkiye, the UK and US) and the European Union (27-member group). Three EU countries--France, Germany, Italy--are double counted.
Share of G20 nations in India's merchandise export was 64 % and import was 52.4% in 2022.
India's leading export destinations among G20 nations in 2022 were the US ($91 billion), the EU ($87 billion), China ($17.5 billion), the UK ($14.4 billion), Turkey ($10.7 billion), Saudi Arabia ($10 billion).
The country's leading import suppliers last year included China ($118.5 billion), the EU ($59.1 billion), Saudi Arabia ($43.3 billion), the US ($38.4 billion), Russia ($34 billion), Australia ($19.2 billion), Korea ($18.9 billion), and Japan ($13.9 billion).
Edited by Megha Reddy