Enhance export competitiveness to manage trade gap: Assocham

NEW DELHI: India needs to focus more on qualitative upgradation of manufactured items to enhance export competitiveness with a view to reducing the widening trade gap, an Assocham report has said.

"There is an urgent need for India to improve upon the technology quotient of its manufacturing exports as this shall increase and improve the competitiveness of Indian exports. Thereby the trade balance position shall also improve," the report titled 'India's Im-Balance of Trade' said.

Although the country's exports have been increasing, the value addition is not much, the report said.

It said that unless the country builds up its export capability, the trade imbalance will not be maintained.

"The trade deficit would be $428.3 billion in 2015-16. Such high levels of trade deficit shall be unsustainable and will put unprecedented pressure on the reserves of the country," it added.

During April-February period in 2011-12, India exported merchandise goods worth $267.4 billion, a year-on-year growth of 21.4 per cent.

During the 11-month period, imports increased by 29.4 per cent to $434.1 billion. Trade gap during the period stood at $166.7 billion.

The chamber projected the merchandise exports in 2015-16 at $430.3 billion as the world trade is declining.

However, having recognised the un-sustainability in the world market, the Department of Commerce has prepared a strategy paper for doubling country's exports to $500 billion in 2013-14.