Vision of a New India – USD 5 Trillion Economy

The Ministry of Commerce & Industry is creating an action-oriented plan which highlights specific sector level interventions to bolster India’s march towards becoming a USD 5 trillion economy before 2025.

• Services sector – USD 3 trillion,
• Manufacturing sector – USD 1 trillion, and
• Agriculture sector – USD 1 trillion.

Impact on Services 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.
• 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.
• Embedded services are substantial part of ‘Goods’ as well. Thus, competitive services sector will add to the competitiveness of the manufacturing sector as well.

Promotion of Trade:

Commerce Ministry is closely working with the Finance Ministry to ease credit flow to the export sector, especially small exporters to ensure adequate availability of funds to them.

The Commerce Minister has identified 15 strategic overseas locations where the Trade Promotion Organizations (TPOs) are proposed to be created.

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 6^thin 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.

Reasons for Improvement in Ease of Doing Business:

• To support start-ups and lower tax rates for MSMEs quicker environmental clearances from 600 days to 140 days has been implemented,
• Abolition of inter-state check post after implementation of GST has been done,
• Enhanced input tax credit and electronic GST network has been put in place and the creation of commercial courts to fast track enforcement of contracts and faster security clearances has lent support to the start-ups in the country.

Among BRICS countries, India improved its rank from 5^th (in 2010) to 3^rd (in 2018).

Twenty-One regulatory changes have been made for ease of doing business for start-ups.

To optimize resource utilization and enhance the efficiency of the manufacturing sector, DIPP launched the Industrial Information System (IIS), a GIS-enabled database of industrial areas and clusters across the country in May 2017.

Source: PIB