The government wants to boost exports and make global trade the cornerstone of economy. Speaking at the Maharashtra global investor summit in Mumbai on Monday, commerce minister Suresh Prabhu said the plan is to raise the share of exports to 40 per cent of the GDP by 2025. Currently, exports constitute 18 per cent of the GDP. The size of India’s GDP is $2.6 trillion at the moment.
This could grow to $5 trillion by 2025, the commerce minister said. Out of the $5 trillion, as much as $3 trillion will come from the services sector, while $1 trillion each will come from the manufacturing and agriculture sectors. While India’s GDP is currently the fifth largest in the world after the US, China, Japan, Germany and Britain, the country’s share in global trade is under two per cent.
If the government has to achieve the target of doubling shipments, it will require the economy to increase the share of manufacturing in the overall GDP basket, which is 14 per cent. “We have decided to support the states to increase their exports. Participation of all the states is very critical to achieve the target,” Prabhu said. As much as 70 per cent of the exports are met by four states - Maharashtra, Tamil Nadu, Gujarat and Karnataka.