| India
has gained something of an international reputation in
trade promotion for its 30-30 matrix. What exactly is
this approach?
It was at the Ministry of
Commerce and Industry in 1991 that the concept of a 30
by 30 matrix was developed. The idea was: look at the
revealed export performance of India across the world
and pick out the most promising 30 markets. Similarly,
look at the products and services that the country is
exporting and pick out the best 30 which in the medium
and long term have a potential for doing better, given
the country's resources, comparative advantages, etc.
Trade promotion efforts
were directed to be focused more on these markets and on
these products, so that there is a framework within
which trade promotion organizations and the national
effort can work.
What was the result?
It was not only trade
promotion that was involved. It was also quality
control, investment in manufacturing, support facilities
for creating industrial estates, technoparks or trade
promotion economic zones, so that investment could go
into these locations for ports, airports and things like
that.
The idea was to develop
products worthy of being exported giving emphasis to
markets where the products can be exported. A concerted
effort was made with this focus.
What lessons can we draw
from this experience about approaches that other
countries could adopt?
I can cite one example
from the leather industry. India has the largest cattle
population in the world. Obviously, because of the
availability of hides and skins, it is one sector that
can do well provided you have the right type of
processing and environmental/pollution control
mechanisms in place, and a design component to ensure
products are acceptable in the markets of the developed
world.
Under this programme, we
developed common effluent treatment and similar
facilities in one or two areas. For an individual firm
to install the facilities would have been extremely
costly. We took a collective approach with the view: let
the infrastructure support come from the State side.
Similarly, in the trade
promotion organization, we started one of the major
industrial fairs for the leather sector in the mid-80s.
We were convinced that India could project its leather
competence -- shoes, uppers, leather jackets, saddlery
etc. -- through an exhibition in which other countries
can come and source their imports. That has developed
into an exhibition that attracts buyers from at least 30
or 40 countries. |
