To enhance their geo-strategic reach, India's public sector enterprises should bid for international projects as a consortium, work with the government to design WTO-smart subsidies and enhance exports, according to a report.
The CII report, titled ’Can the Indian PSEs enhance their Geo-strategic reach', presents a roadmap to expand exports and geostrategic reach of public sector enterprises (PSEs) by 2022.
It also points out several domestic and external barriers that are inhibiting the PSEs' ability to enhance exports. Lack of autonomy, multiple procedures, and management gaps, among others, lead to loss of potential business opportunities, it pointed out.
"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," said Chandrajit Banerjee, Director-General, Confederation of Indian Industry (CII).
The report recommends public sector enterprises 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.
Long-term political strategy and planning is needed for the success of PSEs as they often invest in strategic and long-term projects abroad. Each nodal ministry should have an international desk, it said.
Most PSEs have been exporting and/or have an international presence. As per the report, they now have a presence in over 80 countries across diverse regions with the 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 chamber has suggested a well-defined process for sharing of information between the Indian embassies, nodal ministries, PSEs and their associations.