NIRYAT Portal Launched to Access Export Records

 

NIRYAT Portal UPSC: Relevance

• GS 3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

 

MSME in India: Context

• Recently, Prime Minister Narendra Modi inaugurated ‘Vanijya Bhawan’ and launched the NIRYAT portal to provide real time data to all stakeholders.

 

Niryat portal: Key points

• New Vanijya Bhawan will significantly benefit people associated with trade, commerce and MSME sector.
• NIRYAT – National Import-Export for Yearly Analysis of Trade portal will help in breaking silos by providing real time data to all stakeholders.
• From this portal, important information related to more than 30 commodity groups exported to more than 200 countries of the world will be available.
• In the coming time, information related to district-wise exports will also be available on this portal.
• This will also strengthen the efforts to develop the districts as important centers of exports.

 

 

Exports from India

• India’s exports stood at a total of $ 670 billion i.e., Rs 50 lakh crore.
• India has also crossed the $400 billion threshold and created a new record of export of $ 418 billione., 31 lakh crore rupees.

 

Why India should focus on export?

• Creates a virtuous cycle of employment, income growth, and demand-led industrial growth: as the export will drive domestic manufacturing-led employment and per-capita income. This will increase disposable income resulting in demand-driven economic growth.
• Export and economic growth:
• Pre-1991, a 3.5% growth rate was associated with export growth of about 4.5%.
• However, India’s GDP growth of over 6% after 1991 was associated with real export growth of about 11%.
• Improved sovereign credit rating: Export growth will help in reducing India’s trade deficit, nudging credit rating agencies to improve India’s credit rating resulting in lower interest loans and economic growth.

 

Challenges of Indian Export ecosystem

• Government’s focus on domestic consumption-led growth model:
• Poor growth in per capita income: will limit the consumption of goods and services.
• COVID-19 effect: resulted in poor public spending, tax cuts, private investment, etc., limiting the scope for domestic demand-led growth.
• Disconnect with Global Value Supply Chains (GVC): Unlike major exporting countries of east and south-east Asia, India is poorly connected with GVCs. This limits its export potential.
• This results in low penetration in high-income countries.
• Focus on limited export destination: This results in high competition and fewer growth opportunities.
• Poor domestic infrastructure and clear policy direction: for example, India spends more than 14% of its GDP on logistics, resulting in costlier products for international markets, diminishing their competitiveness.
• Lack of awareness: There is an information gap among people of India, resulting in fewer people participating in the export market.
• Technical barriers to trade: Imposed by many developed countries to reject exports from India. For example, use of sanitary and phytosanitary measures by European Union countries to rejects various Indian goods.

 

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