The body, likely to be called Trade India, could be set up on the lines of Japan External Trade Organisation (JETRO) and Korea Trade-Investment Promotion Agency of South Korea (KOTRA), and will replace the multiple export promotion councils, which would henceforth function under the trade body, a senior government official told ET.
Deliberations have started on the broad contours of the trade body, including its structure and function, and a formal proposal could be made soon.
The need for a centralised body has been felt to help the government identify key products and markets that should be tapped to improve exports, enhance efficiency and take accountability of any slackness in exports going forward. “The centralised body will bridge the gap between the Centre and the industry, and work on a comprehensive roadmap with annual targets set to achieve the $2-trillion export mark,” the official said. “Besides, it will also be responsible to direct all funds to EPCs, including the market access initiative grant.”
“A dedicated trade promotion body will drive strategy, strengthen ‘Brand India’ and strengthen our negotiations,” said another official, adding that its name would be crucial to make it an identifiable brand. The new body will also be expected to explore international trade opportunities in untapped markets.
Trade promotion by private sector
The trade body will be expected to promote new exporters, while identifying bottlenecks for existing products and markets.The government is of the view that the India Trade Promotion Organisation, set up for the purpose, has been focusing largely on trade fairs, while missing out on the key requirement of planning for export promotion.
There is also a plan to rope in the private sector for trade promotion, sources said.
India’s merchandise exports touched $447 billion in 2022-23, compared to $422 billion in 2021-22, a growth of nearly 6%, despite global challenges such as rise in raw material prices, restrictions in exports of certain products and the Russia-Ukraine war.
