India needs to devise cohesive strategies of retaining its market share first, and then increase it in a context of global economic slowdown, President Pranab Mukherjee said on Wednesday.
“The volume of world trade is expected to remain sluggish even in 2016, growing at 2.8%. In a scenario such as this, we need to devise cohesive strategies of retaining our market share first and then increasing it,” Mukherjee said at an event here organised by the Federation of Indian Export Organisations (FIEO).
“We therefore need to be innovative in our approach to capture markets with customised products in today’s highly competitive world,” he said.
“We must be concerned with the volume of trade taking place as falling trade levels impact on the economy, industrial growth and employment levels,” he added.
India’s exports declined for the 16th straight month in March, with exports falling by 5.47 % to $22.71 billion in the month, while for the fiscal 2015-16, exports declined by 15.8 % to $261.13 billion.
Describing foreign direct investment (FDI) as an important indicator of faith that overseas communities and investors repose in a country, the president noted FDI in India has increased by 27.5 % to $42 billion in the April-February period.
“This trend, specially in a climate of contracting worldwide investments, is welcome. I am hopeful that it shall help attract higher FDI in our economy.
“India’s GDP growth is 7.6 % and as it is projected to be 7.7 % and 7.9 % in the coming years, we need not feel disadvantage because India is enjoying today the highest growth rate in the major economies of the world. Therefore this growth momentum is definitely strong positive signals,” he said.
“It is imperative that our domestic business promotes sustainable, stable and inclusive growth which encompasses all sections of society. The external sector is critical to the growth of any country, particularly in the context of globalising economy,” he added.