Concerned over India's exports decline for the 18 months in a row, the government has kick started an exercise for mapping region specific exports, with an aim to capture greater market share in global trade. The government has identified the pharmaceutical sector as an export commodity with high potential to have higher market share in Europe and auto components to drive exports growth in South America. Though, it’s in initial discussion and the government’s aim is to increase India's market share in global exports through products that are expected to grow at a high pace in next four years.
Accordingly, the government has urged the export promotion council for pharmaceuticals to prepare a forecast of possible compounded annual growth rate in the next four years, taking 2015-16 as the base year of India's pharmaceutical exports to Europe since export commodities with high potential should grow faster than the European market in the next four years ending 2019-20.
The new exercise is in line with Foreign Trade Policy of 2015-20, which seeks to support 852 tariff lines that were not supported earlier. Under the exercise the exporting companies will have to identify possible products in each of the categories such as bulk drugs, formulations, Ayush and herbal products, taking into account market dynamics such as patent expiries and the possible expansion of the generic sector of Europe. By 2018-19, the government has set a target of increasing exports to $900 billion and expanding the country's share of global exports to more than 3%.
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