Jammu & Kashmir legislative assembly members are fighting with one another over the consumption of “beef”, but bovine products are not something that the commerce ministry can ignore today.
The Federation of Indian Export Organisations (FIEO) has identified bovine cuts, boneless and frozen, as one of the key products that has huge export potential. It is among the 36 products out of the top 100 products of India’s exports basket that continue to show strong growth prospects amidst the continuing decline in India’s export earnings.
With $4.7 billion worth exports in 2014, bovine products earn the second-highest export revenue after articles made using precious metals ($11.2 billion export earnings in 2014) in the 36 product list.
According to FIEO, the 36 products showed a CAGR of 21 per cent in India’s exports during 2010-14 (as against overall exports CAGR of 9.56 per cent).
The CAGR of the world’s imports for such products was 16.63 per cent in the same period (as against overall global imports CAGR of 5.3 per cent in the same period).
The total exports of these 36 products from India in 2014 (calendar year) was $45.58 billion, close to 14 per cent of our total exports.
The World Imports for these 36 products in 2014 stood at $700.45 billion. India’s share in World Exports for these 36 products was thus 6.5 per cent in 2014 as against our overall share of about 1.7 per cent in world merchandise exports.
“If India can increase its share from 6.5 per cent to 10 per cent in next three years, we can take our exports from $45.58 billion to over $110 billion in the next three years,” says SC Ralhan, President, FIEO.
FIEO suggested consultations with products-specific Export Promotion Councils and other organisations to understand the supply side challenges in meeting such targets, and devising product-specific strategies or a product market matrix strategy to boost exports.
Commerce Secretary Rita A Teaotia had held detailed consultations with around 27 Export Promotion Councils on October 7 to seek their views and suggestions on ways to promote exports. The results of the FIEO analysis were conveyed during that time.