Indian PSEs should boost Exports through High-Level Export Strategy Committee: CII

NEW DELHI: “Setting up a High-Level Export Strategy Committee will implement the five-point agenda set out by the Prime Minister for enhancing the competitiveness of Indian PSEs by 2022.
A short-term (5 years) and long-term (10 years) roadmap for the PSEs, clearly laying down exports and growth targets, is the order of the day to enhance their geo-strategic reach,” stressed Mr Chandrajit Banerjee, Director-General, Confederation of Indian Industry (CII).

CII Research has brought out a report ‘Can the Indian PSEs enhance their Geo-strategic reach’, which presents a roadmap to expand exports and geo-strategic reach of PSEs by 2022. It recommends that PSEs bid for international projects as a consortium, leveraging each other’s mutual competence, experiences and strengths. They should also leverage regional and bilateral trade agreements in sectors where they have a comparative advantage.

 

Most PSEs have been exporting and/or have an international presence. As per the CII report, they now have presence in over 80 countries across diverse regions with majority concentrated in the South Asian region. A number of them are moving away from their traditional markets to new markets, such as Africa and Cambodia, Laos, Myanmar and Vietnam (CLMV).

 

The report points out several domestic and external barriers, which are inhibiting the PSEs’ ability to enhance exports. Lack of autonomy, multiple procedures, management gaps, and so on lead to loss of potential business opportunities.

The report further identifies that many PSEs do not even have a dedicated international desk or in-house teams which can support exports and international competitive bidding. There are wide variations in terms of support available from the Nodal Ministry/Reporting Ministries of the PSEs. CII suggested a well-defined process for sharing of information between the Indian Embassies, nodal Ministries, PSEs and their associations.

 

The CII report underscores that India’s Public Sector Enterprises can enhance their geo-strategic reach by 2022 with the actioning of the 15-point recommendations for the PSEs, Government and industry associations.