Union Trade and Industry Minister Piyush Goyal on Thursday (5 May) urged project exporters to diversify and enter developed world markets and urged them not to limit themselves to line projects government credit and projects in the developing world.
Goyal said this during his keynote speech at the “Summit on Enhancing Global Opportunities for Indian Project Exporters” hosted by Exim Bank in New Delhi.
Developed countries can very well offer the advantages of low risk and low capital requirement with higher credit rating of projects, which will allow companies to have higher credit limits, said the minister.
He commended India Exim Bank for its support to exporters, for organizing the Summit by including international stakeholders and for conducting the study on Indian project exports, according to a statement from the Ministry of Commerce.
Outlining challenges facing the global economy since the start of 2022, such as the Omicron wave, global supply chain disruptions, soaring raw material costs, container shortages, financial market volatility global and geopolitical tensions, the Minister observed that it is in this context that the summit is both timely and important.
Observing that several Heads of Government and Ministers had chosen India as their first post-Covid destination, he said it signaled the huge interest that India’s story has sparked around the world.
It is a recognition of the efforts made by every citizen and is indicative of a bright future for the nation, he added.
The Minister commended all stakeholders for the outstanding export performance of nearly $675 billion in 2021-2022 and the record services export of nearly $254 billion, even with a pandemic-induced slowdown in the travel and hospitality.
Even the April 2022 export figures which hit nearly $38 billion are historic, he noted.
Goyal said the performance of the IT sector during the pandemic was particularly remarkable and added that India had not dropped a single international engagement during the pandemic.
Through a visionary initiative like Digital India, the nation has adapted very well to the covid requirements and made possible record service exports in a covid year, he explained.
Setting a target of exporting goods and services worth $1 trillion each by 2030, the minister said the target could only be achieved with the full participation of every stakeholder.
The Minister also urged the banking sector to abandon the conservatism mindset that has taken hold in the industry and be open to taking some risks and added that risk taking is an integral part of doing business.
India has all the ingredients to become a global player in project exports, the minister said, adding that the world has realized that investing in infrastructure is absolutely essential.
Project exports would also contribute to the growth of our services and goods exports, he said.
He called on the project export sector to look at credit enhancement programs and find a support scheme for private banks to participate in project financing.
Highlighting the government’s Lines of Credit (LOC) scheme which has particularly played a pivotal role in creating opportunities for Indian project exporters, the Minister said that through the Concessional Finance Scheme (CFS), the government supported Indian companies bidding on strategic infrastructure projects overseas. market.
He clarified the need to create businesses independent of government aid and said that with such businesses, the chances of growth and penetration of markets in the developed world are better.
The Minister urged the Exim Bank to help exporters by studying what markets in developed countries want and guiding our infrastructure companies to meet those requirements.
He also called on the project’s export sector to proactively engage in the government’s FTA negotiations and provide input and feedback on any market access issues or discrimination they are facing. confronted with the FTA countries.
He assured that these concerns would be taken into account in the FTA negotiations with India.
Goyal said it was time for Indian engineers and project managers to build the world.
He pledged to fully support Indian project exporters and take forward the suggestions emanating from the summit’s deliberations to make India “the destination” for project exports.