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The VIKSIT framework for exports lays down an approach for enabling a sharper focus on exports and identifying critical success factors for enabling accelerated growth.
We have applied the framework to three select sectors - auto, electronics and food processing - and the same can be applied for other industrial sectors.
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Sanjeev Krishan, Chairperson, PwC in India, introduces the VIKSIT framework
VIKSIT framework - an approach to enable India to achieve its USD 1 trillion in merchandise exports ambition by addressing current challenges and key considerations
V - stands for Value addition and volume-led growth
I - for Infrastructure investments
K - for Knowledge and capacity building
S - for Sustainable supply chains
I - for Inclusive industrial development
T - for Technology enablement
India is projected to reach USD 1 trillion in merchandise exports by FY29 in the optimistic scenario of our report.
India surpassed USD 451 billion worth of merchandise exports last year.
India’s exports grew 8.6x time from 2003 to 2023.
India’s contribution to global trade grew by 2x from 0.5% in 1990 to 1.85% in 2023.
India’s export basket has diversified with a revealed comparative advantage in over 1,400 commodities.
In 1990s, trade made up 15% of India’s GDP (at current prices in INR crore), it is 46% in 2023.
The rising contribution of trade to India’s growth has been facilitated by the reduction in the global weighted average Most Favoured Nation (MFN) rates from 21.7% in 1990 to 6.6% in 2021.
The VIKSIT framework has been applied to three select sectors: auto, electronics and food processing.
EVs, EV battery and SDV enabling technology are the three focus areas identified in the report for driving exports growth (V). Mobilising investments into building scale and R&D infrastructure for these segments will be critical (I). The role of OEMs will be defining as these players will have to ensure high component carryovers during design, undertake knowledge transfer and maintain relevance of Tier-2 and Tier-3 manufacturers (K). ESG performance across the value chain will be a competitive differentiator for manufacturers (S). While overall exports growth shall improve the financial metrics of the MSMEs, the sector growth may also present differentiated avenues for growth (I), e.g. developing recycling capacity, developing Tier-1 suppliers for EV-specific requirements such as aluminium battery casings. Lastly, we envisage OEMs to be the source of the technology push (T) required for emerging segments such as developing full-stack proprietary platforms and establishing commercially viable local value addition as profit pools are expected to shift.
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Vivek Prasad talks about how our export strategy must be inclusive and infrastructure-led with a focus on sustainable development, skilling and value addition.
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Manpreet Singh Ahuja talks about how the VIKSIT framework offers a strategic roadmap to further elevate the electronics industry.
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Arnab Basu outlines the top three key industries that are pivotal to making the USD 1 trillion merchandise exports a reality.
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Mohammad Athar sheds light on the VIKSIT framework, a strategic approach to drive our export growth.
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Ranen Banerjee emphasises how PwC India’s VIKSIT framework is crafted to empower all critical stakeholders in this ambitious endeavour.