Indian exports could hit $1 trillion by decade end

Citation

(2010), "Indian exports could hit $1 trillion by decade end", Strategic Direction, Vol. 26 No. 9. https://doi.org/10.1108/sd.2010.05626iab.001

Indian exports could hit $1 trillion by decade end

Article Type: Competitive horizon From: Strategic Direction, Volume 26, Issue 9

The Federation of Indian Export Organizations (FIEO) believes that growth in sectors including IT and energy could help increase the value of India’s export market to $1 trillion by 2020. This substantial increase from the estimated figure of $177 billion for 2009-2010 would see the country account for 5 percent of global trade. While the FIEO acknowledges the challenging nature of this target, it is deemed achievable providing rigorous government strategies are devised and implemented. It is suggested in a report published by the Economic Times (www.economictimes.indiatimes.com) that India’s government should also focus on sectors that include textiles and clothing, carpets and handicrafts, pharmaceuticals and healthcare, processed foods and leather. Likely substantial investment in high technology over the next decade will also be significant; especially given industry declines in Japan, Europe and the USA. This sector alone could account for as much as $400 billion, the FIEO claims. Continuing emphasis on reducing carbon emissions may increase natural gas exports, while India and its E7 partners are expected to account for one-fifth of the anticipated doubling in size of the pharmaceutical market.

Sustainability key for organic food growth

A 12.9 percent fall in UK sales during 2009 has prompted organic food manufacturers to turn their attention to sustainability as they strive to improve their fortunes. The problem is not confined to the UK either as Organic Monitor reports similar declines in other parts of Europe. But the economic recession together with a Food Standards Agency report raising doubts about the health benefits of organic food has made the situation more severe, the specialist market research company reports. The ensuing difficulty in justifying premium prices has forced manufacturers to compete by highlighting the pro-environmental qualities of their products. A report published by www.foodnavigator.com recognizes that marketing products as green is a logical move and claims that such firms will be ahead of conventional rivals due to the inherent concern for the environment among organic food consumers. Organic Monitor does, however, urge the organic industry to promote their sustainability efforts more effectively.

Improved forecast for economy in South Korea

Strong exports and job creation have been cited as reasons for an upwardly revised growth estimate for South Korea’s economy during 2010. The Korea Development Institute had predicted that the country’s economy would expand by 5.5 percent but raised the figure to 5.9 percent on the basis of these developments. According to the state-run organization, data showing new jobs indicates firms are becoming more confident about economic performance. The KDI expects unemployment to remain about 3.7 percent this year but warns of a 3 percent rise in consumer prices. Given this outlook, an interest rate rise from its current historical low of 2 percent by the central bank is regarded as possible. According to a report published by the Korea Times (www.koreatimes.co/kr), the KDI expects South Korea to rival China and India for the strongest growth worldwide. However, IMF estimates growth for these two Asian powerhouses to reach 10 percent and 8.8 percent respectively. Looking ahead to 2011, South Korea’s government is hoping that more private sector investment will help stabilize growth to somewhere close to the predicted global average of between 4 and 5 percent.

Preparing for the unexpected

Business is never predictable at the best of times. But events such as global financial turmoil and the disruption caused by volcanic ash illustrate how vulnerable companies can become. Indeed, even the largest organizations are not immune when sudden and drastic change occurs. But DFJ Espirit claims that companies that develop appropriate skills will be best positioned to withstand any such eventualities. The venture capitalist cites quick leadership, togetherness, passion and effective communication as vital ingredients. Added together, these factors produce a strong organization able to respond even to challenges where no warning signs occur. Challenges of this nature are thankfully the exception though and shrewd operators can be prepared for change by heeding market developments. A report published by www.growthbusiness.co.uk claims that listening constantly to customers, suppliers and partners reduces the possibility of missing vital clues and getting caught off guard. DFJ Espirit additionally points out that companies more closely attuned to the market and customer needs are invariably stronger.