India's Export Future: Embracing High-Value, Tech-Driven Manufacturing

India is urged to transition towards high-value, technology-intensive manufacturing to bolster export growth, according to a report by consulting firm Forvis Mazars India. The report highlights the threat posed by declining demand in advanced markets and increasing protectionism, which jeopardize India's trade prospects amid global supply chain fragmentation.

Rohit Chaturvedi, Partner at Forvis Mazars in India, commented on the findings, emphasizing that export growth cannot rely solely on GDP increases. He stressed the necessity of enhancing high-value manufacturing with strategic policy incentives, aiming to integrate India deeper into advanced global value chains. Chaturvedi noted that progress hinges on capital investment and improved logistics infrastructure to mitigate bottlenecks.

As India enters a crucial phase in its external sector, the report anticipates merchandise exports reaching USD 1 trillion by 2030, with overall exports surpassing USD 2 trillion. This strategy not only supports GDP growth but also enhances integration with global value chains, drawing foreign investments. Recent shifts in exports focus on high-value goods, led by electronics, engineering products, and pharmaceuticals, underscoring the move towards technology-driven trade.

(With inputs from agencies.)