India can become major export hub by 2030: HSBC

India has the potential to become the world’s fifth-largest exporter of goods by 2030 with the textile industry set to regain its place as the global garment hub, an HSBC report said.

India has the potential to become the world’s fifth-largest exporter of goods by 2030 with the textile industry set to regain its place as the global garment hub, an HSBC report said.

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“Despite struggling with a number of structural impediments to growth, prospects for medium-term growth in trade remain strong,” the HSBC report said.

“The economic potential for India remains strong, with the growing population and rapidly expanding middle class — it presents opportunities for business. India is forecast to emerge as the world’s largest middle-class market, surpassing both China and US,” said Sandeep Uppal, MD and head, commercial banking, HSBC India.

The report comes barely a fortnight before the government’s planned unveiling of a new five-year Foreign Trade Policy that will likely include sops to spur export and incentives for domestic value-added products — the proportion of exports truly produced in India, which will be dovetailed with the “Make in India” programme that Prime Minister Narendra Modi will unveil later this month.

The HSBC report said that the UAE is likely to remain India’s top export destination by 2030, and China is forecast to emerge as the second-largest export market, displacing the US.