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Indian exporters need to be future-ready for technology and sustainability : ASSOCHAM-Deloitte Report

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NEW DELHI : With exports of both services and merchandise becoming a key driver in realising India’s ambitions to become a USD 5 trillion economy, the country’s exports will have to be future-ready in terms of conforming to evolving global standards of green technology and sustainability, including experimentation around the central bank digital currency, an ASSOCHAM-Deloitte report has said.

Though the drive towards global sustainability standards may not be uniform for each nation due to varying socio-economic conditions, it will lay the ground for innovative solutions to produce and finance sustainable goods and services. ” Hence, as the first step, it has become imperative for India to act in defining sustainability standards that progressively match global expectations and keep up the momentum in export growth”, the report titled ‘Trade finance ecosystem: The path to inclusive and sustainable growth’  emphasised.

ASSOCHAM Secretary General Deepak Sood said, ”Concepts like ‘supply chain finance (SCF)’ , Distributed Ledger Technology (DLT)-based trade ecosystem and the Experimentation around Central Bank Digital Currencies (CBDCs) are gaining traction amongst the national governments, regulators, technology innovators and votaries of environment protection. We need to double down on the technologies and future ecosystems”.

The report said, to foster innovation and promote SCF at a large, ” there is a need for experimentation around Central Bank Digital Currencies (CBDCs).However, their usage needs to be evaluated in light of various design options being considered for roll out of digital currencies across the globe”.

In addition to climate change disruptions, there is also a growing emphasis on green technology and sustainability, with the introduction of new regulations. This will change the trade pattern in favour of nations producing sustainable merchandise and services, and pressurise existing trade supply chains, further disrupting the trade flow, the report noted.

The confluence of new emerging technologies, such as blockchain, Internet of Things would play a key role in making the Indian exports and the processes efficient and compliant to green norms.

India has witnessed steady growth in exports over the last few years, albeit inconsistently. Exports have performed well since April 2021. In FY22, India contributed to about five  per cent of global trade with USD 756.7 billion imports and USD 669.7 billion exports.

The ASSOCHAM-Deloitte report also pitched for creating a framework  to reduce the compliance burden and standardise the documentation requirements to reduce the time for due diligence conducted by banks and other financial institutions. MSMEs should also be educated about incorporating SCF into their ecosystem

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