Vision of New India – USD 5 Trillian Economy
Why in news?
- The Working Group was constituted by the Department of Industrial Policy and Promotion inthe Ministry of Commerce and Industry with participation from government and industry has tasked to develop a roadmap towards achieving a 5 trillion dollar economy by 2025 has prepared its report and it is being circulated to the stakeholders for further suggestions.
Objective of this initiative:
- This initiative will enhance the competitiveness of India’s service sectors through the implementation of focused and monitored Action Plans, thereby promoting GDP growth, creating more jobs and promoting exports to global markets.
- Services sector in India has immense employment potential, it will enhance the competitiveness of India’s service sectors through the implementation of focused and monitored Action Plans, thereby creating more jobs in India, contributing to a higher GDP and exports of services to global markets.
- As the Services sector contributes significantly to India’s GDP, exports and job creation, increased productivity and competitiveness of the Champion Services Sectors will further boost exports of various services from India.
- Embedded services are an important part of ‘Goods’ as well. Thus, competitive services sector will add to the competitiveness of the manufacturing sector.
- The share of India’s services sector in global services exports was 3.3% in 2015 compared to 3.1% in 2014. Based on this initiative, a goal of 4.2 % has been envisaged for 2022.
Vision of a new India:
- The contribution to USD 3 trillion and focused plans will be on boosting services sector, Agriculture to USD 1 trillion and manufacturing to USD 1 trillion.
Agriculture Export Policy 2018:
- The Commerce Ministry has formulated India’s first Agricultural Export Policy with a focused plan to boost India’s agricultural exports to USD 60 billion.
Elements of Agriculture Export Policy:
- The recommendations in the Agriculture Export Policy are in two categories Strategic and Operational. Strategic involves policy measures, infrastructure and logistics support, holistic approach to boost exports.
- Operational involves focus on clusters, Promoting value added exports, Miscellaneous.
Promotion of trade:
- Commerce Ministry is working closely with the Finance Ministry to ease credit flow to the export sector, especially small exporters to ensure adequate availability of funds to them.
- India has made 23 ranks in the World Bank’s Ease of Doing Business Ranking this year to be ranked at 77. Upward move of 53 ranks highest improvement in 2 years by any large country since 2011. India now ranks first in Ease of Doing Business Report among South Asian countries.
Made in India:
- Prime Minister of India Narendra Modi Launched on 25th September 2014 to make India the hub of manufacturing, India has emerged as one of the fastest growing economies.
- Exemption is given where estimated value of procurement is less than Rs. 5 lakhs and minimum local content shall ordinarily be 50%.
- A Standing Committee in Department of Industrial Policy and Promotion, under the chairmanship of Secretary, DIPP implementation of the 2017 order giving to make in India products.
India Trade Promotion Organisation:
- India Trade Promotion Organisation (ITPO) is the trade promotion agency of the Ministry of Commerce and Industry.
- Exhibitions and conventionsat ground in PragatiMaidan in New Delhi, the ITPO holds the India International Trade Fair (IITF) since 1980 every year.
Trade Infrastructure for Export Scheme (TIES):
- TIES aid with setting up and up-gradation of infrastructure projects with overwhelming export linkages like the Border Haats, Land customs stations, etc.
- The Central and State Agencies, including Export Promotion Councils, Commodities Boards, SEZ authorities and apex trade bodies recognized under the EXIM policy of Government of India, are eligible for financial support under this scheme.
India Improves Ranking in Ease of Doing Business:
- India had made a leap of 23 ranks in the World Bank’s Ease of Doing Business Ranking this year (2018) to be ranked at 77.
- India now ranks first in Ease of Doing Business Report among South Asian countries compared to 6th in 2014.
Multi-Modal Logistics Parks Policy (MMLPs):
- MMLPs is to improve the country’s logistics sector by lowering over freight costs, reducing vehicular pollution and congestion and cutting warehouse costs with a view to promoting moments of goods for domestic and global trade.
- India is one of the fastest growing major economies and is currently ranked as the world’s sixthlargest economy. Projections of growth, over the medium term, remain encouraging and optimistic for India. The Government has several ongoing initiatives across sectors focused on growth. In agriculture, the Government is aiming to reorient policy focus from being production-centric to becoming income-centric.
- The emphasis on incomes provides a broader scope towards achieving the needed expansion ofthe sector. The proposed Industrial Policy 2018 provides an overarching, sector-agnostic agendafor the enterprises of the future and envisions creating a globally competitive Indian industrythat is modern, sustainable and inclusive.
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