Mumbai: With merchandise exports witnessing a slowdown during the past decade, there is a need to focus on newer avenues for export growth from India. According to a study by Exim Bank, project exports is one such sector of opportunities for India. Analysis in the study indicates that contract awards
for projects financed by Multilateral Development Banks (MDBs) [World Bank, the Asian Development Bank (ADB), the African Development Bank Group (AfDB), the Inter-American Development Bank and the European Bank for Reconstruction and Development] amounted to nearly US$ 155.7 billion during 2014-2018, indicative of immense opportunities for project exporters in India.
Indian companies secured contracts amounting to US$ 21 billion during this period in projects funded by the major MDBs—the ADB, the AfDB and the World Bank funded projects. The Study has taken an essential first step of evaluating the performance of project exporters in India over the recent years and analysing key aspects of their competitiveness in the international market. Based on a thorough analysis, comprising desk research and survey inputs received from select project exporters, the Study identifies major challenges for the sector in India and recommends pertinent strategies for alleviating these concerns.
The strategies identified in the study include strengthening Export Credit Agencies [ECAs (Exim Bank and ECGC ltd)] in India, enhancing success in securing contracts through adoption of consortium approach and encouraging local presence in key geographies, capacity building for project exports by providing timely information on subcontracting opportunities and organising awareness programs for project exporters, alleviating non-tariff barriers to project exports by giving due consideration to these issues in trade negotiations, addressing data related issues for more informed policy decisions, considering
membership in other MDBs such as the Inter-American Development Bank for enhancing India’s market access in lesser penetrated geographies such as the Latin America and Caribbean, and striving towards bridging the infrastructure financing gaps to create more opportunities for project exports.
The Study titled ‘Project Exports from India: Strategy for Reenergizing and Reorienting’ was released by Union Minister of Commerce and Industry Piyush Goyal.