Concerned over slowing global demand and declining exports, Finance Minister Arun Jaitley on Friday underlined the need for creating an ecosystem to boost shipments to the markets overseas.
He asked exporters to produce quality products at competitive prices to meet the challenge of slowing demand in international markets.
“One important factor, which our global experience now teaches us is that the world wants to buy good products, it wants to buy cheaper products and therefore you have to think ahead of the others, manufacture products which are cost and quality competitive.”
“This can actually enable you, even in adverse global circumstances, to find bigger market. And we have to create in India an ecosystem which can actually facilitate that,” he said.
The minister was speaking at the closing ceremony of 14-day long India International Trade Fair.
Observing that trade helps in expanding economic activity, Jaitley said the “glaring challenge” is to step up shipments at a time when the world trade was getting compressed.
“The purchasing capacity of global buyer is contracting. Their ability to buy has been reduced and therefore suppliers are going to find it difficult (to get buyers),” he added.
He further said that declining prices of oil, gas, metals, food products and other commodities in the global market has adversely impacted the value realisation from exports.
“…Volumes have not declined, values have declined and values have declined from oil to gas, to metal to commodities to food products… It gets reflected in the export figures month after month,” he added.
India’s exports have remained in the negative territory for the 11th month in a row by registering a dip of 17.53 per cent in October to USD 21.35 billion, mainly on account of slowing global demand.
Talking about trade fairs, Jaitley said they are going to help boost trade activities. This year, India International Trade Fair (IITF) witnessed about 17 lakh footfalls.