Mumbai: India has untapped export potential worth USD 1.01 trillion in the high income G20 countries for about 42 products, as per a research study by MVIRDC World Trade Center Mumbai.
The data suggests that India meets hardly 1.4% of G20 import demand, which leaves huge scope to cater to this market.
The study has identified 42 products, ranging from agro commodities, chemicals, textiles to pharmaceuticals and industrial machineries, where India has comparative advantage to export to the G20 market (minus India).
These 42 products include meat, marine products, organic and inorganic chemicals, pharmaceutical products, iron & steel, aluminum, textile, synthetic fibre, gems & jewellery and industrial machineries.
According to the report, G20 is one of the most integrated trade bloc as 80% of its imports are sourced from among the member countries.
Yet, large countries such as India have not explored the full benefit of trade integration with G20 bloc.
India supplies hardly 1.4% of the import demand of G20 countries (minus India), which leaves huge scope to cater to this market. The annual import demand of G20 countries (minus India) is USD 16.5 trillion and it represents 74% of world imports.
The study underscores the untapped export potential of India to the G20 market. Even though G20 countries represent 75% of global trade, they contribute hardly 56% to India’s foreign trade, the study highlights.
In his foreword message to the study, Piyush Goyal, Union Minister for Commerce & Industry, Government of India remarked, “The study provides insightful recommendations to strengthen Indian exports to G20 countries by leveraging the existing Free Trade Agreements and capitalizing on the global network of World Trade Centers (WTCs) in G20 countries. The findings of this comprehensive study will pave the way forward for strengthening India’s trade relations with G20 countries in the identified product categories where India has untapped export potential in the G20 market.”
Dr. Vijay Kalantri, Chairman, MVIRDC WTC Mumbai remarked, “We need to create awareness and build capability of local MSMEs to foray into the G20 market in the sectors identified in this study. WTC Mumbai is committed to organize online trade fairs, exchange trade delegations and conduct buyer-seller meetings to strengthen our trade linkage with G20 countries. WTC Mumbai can leverage the global network of WTCs to enable local MSMEs to reach out to the target market and potential clients in the G20 countries.”
Rupa Naik, Executive Director, MVIRDC WTC Mumbai pointed out, “WTC Mumbai has always believed in the adage of ‘Promoting Prosperity Through Trade’ as trade fosters global peace and stability, which is the foundation for economic development. G20 countries can join hands to create an open trade environment to raise standard of living and end poverty, which is the first goal of the UN Sustainable Development Agenda. India’s G20 Presidency can be an opportune time to rethink the trade relations among the member economies for their mutual prosperity.”
