BOOSTING INDIA’S GLOBAL TRADE THROUGH RESEARCH AND DEVELOPMENT(R&D) INNOVATION

Why in the news?

India aims to enhance its global trade share by focusing on R&D and intellectual property rights, targeting $1 trillion in merchandise exports by 2030 through strategic investments and innovation.

BOOSTING INDIA'S GLOBAL TRADE THROUGH RESEARCH AND DEVELOPMENT(R&D) INNOVATION - UPSCsource:scribd

About R&D’s Role in Enhancing India’s Trade:

  • Current Position: India ranks 17th in global exports, accounting for85% of trade as of 2023.
  • Strategy for Growth: PwC India Chairperson Sanjeev Krishan emphasises the need for India to focus on both high-volume low-value products and high-value products with intellectual property rights (IPR) to boost exports and achieve the $1 trillion merchandise export target by
  • Focus on Innovation: Krishan advocates for enhancing domestic value addition through innovation and IPR ownership rather than merely adding value to foreign-made products.

Blueprint for Achieving Export Targets:

  • Proposed Measures: PwC India’s report, “Vikasit: An Approach for India to Achieve $1 Trillion Exports,” outlines steps to increase India’s export potential. Key recommendations include:
    • Value Addition: Focusing on creating high-value products and owning Intellectual Property Rights(IPR).
    • Infrastructure and Investments: Investing in infrastructure and sustainable supply chains.
    • Industry Prioritisation: Identifying priority industries and products to boost growth.
Key Government Initiatives To Promote Export Growth:

Trade Infrastructure for Export Scheme (TIES):

  • Objective: Enhances infrastructure for facilitating exports.
  • Key Focus: Developing and upgrading facilities such as ports, airports, and logistics hubs.
  • Support: Provides financial assistance for infrastructure projects that boost export capabilities.

PM Gati Shakti National Master Plan (NMP):

  • Objective: Improve logistics and infrastructure to enhance export efficiency.
  • Key Focus: Integrates various infrastructure projects, including transport and logistics, to streamline movement of goods.
  • Support: Facilitates better planning and execution of infrastructure projects critical to export growth.

Duty Drawback Scheme:

  • Objective: Refunds duties paid on raw materials used in the production of exported goods.
  • Key Focus: Reduces the cost of production by reimbursing customs duties and taxes.
  • Support: Helps exporters maintain competitiveness in international markets.

Remission of Duties or Taxes on Export Products (RoDTEP):

  • Objective: Provides refunds for duties and taxes not covered under other schemes.
  • Key Focus: Remits indirect taxes and levies on exported products to enhance export competitiveness.
  • Support: Aims to make Indian products more price-competitive globally.

Rebate of State and Central Taxes and Levies:

  • Objective: Provides rebates on taxes and levies incurred during the production of export goods.
  • Key Focus: Reduces the overall tax burden on exporters.
  • Support: Encourages higher export volumes by making products more cost-effective.