New Delhi: The Steering Committee for the Promotion of Local Value Added and Exports (SCALE), chaired by Mahindra & Mahindra MD and CEO Pawan Goenka, suggested a sector strategy to boost local manufacturing and exports.
The committee, which submitted its report to the Ministry of Commerce, identified five key sectors, including automotive and automotive components, furniture, fisheries, textiles and toys, as pillars of Atmanirbhar Bharat, where action specific would help increase exports.
Regarding the auto components sector, he suggested urging MNC component manufacturers to establish parent factories in India and take advantage of India as an export hub. This strategy, along with programs to induce multinational OEMs to use India as a sourcing base, creation of exclusive export hubs in industrial zones near ports, and promotion of automotive component MSMEs for creating a robust supply chain, would help double exports in the automotive and auto components sector to $ 30 billion by 2025-2026, he said.
The Goenka-led committee also recommended the development of three or four integrated mega-furniture centers near ports to make India one of the leading furniture exporters to the US, EU and Middle -East. Already, the incentive system linked to productivity had been introduced for local manufacturing in this high potential sector.
India’s current share in the global furniture trade is less than 1%. The committee had said this could be dramatically intensified over the next decade with a mix of incentive programs and tax measures for a zero duty on raw material imports and a clear and effective timber policy that broadens the source. certified timber plantation in India.
The panel said the country’s exports of fishery products could double to $ 14 billion by 2025 and further double over the next five years. For this, he suggested increasing the share of value-added products in exports. He also proposed the creation of port transformation parks for the added value of sea catches from other countries and the development of cold chain infrastructure along the coast and airports.
Action in the toy sector would require encouraging multinationals to use India as a global manufacturing hub for exports and also help develop an ecosystem of domestic suppliers for subcomponents, the panel said.
He also recommended the development of mega-clusters of toy manufacturing and the reduction of tariffs on essential raw materials. Suggestions were also made for a dedicated toy policy, focused on exports.
In its presentation to Minister of Trade and Industry Piyush Goyal, the panel set a goal of doubling textile exports to $ 80 billion over the next five years. He suggested the creation of mega clusters to address cost competitiveness, productivity and lead times for procurement, distribution and logistics.
The committee also recommended removing anomalies from existing FTAs like SAFTA and ASEAN, and establishing sectoral PCAs with Canada, the UK and the EU. He also suggested making India a regional hub for the supplier of textile fabrics with the countries of the sea, engaging in government-to-government discussions with Bangladesh and Vietnam, and making Indian textiles a manufacturer. sustainable.