Indian imports from key trading partners can rise by USD 21 billion, while the set of 10 countries represent an export headroom of only USD 17 billion, a report by a foreign lender said on Tuesday.
Imports from the US, Malaysia, Indonesia, Singapore and the UK have the greatest opportunity for growth, Standard Chartered Bank said in its study, adding that the largest trading partner US alone enjoys a USD 5.7 billion opportunity.
It can be noted that the Indian government has been looking at ways of increasing exports, especially on the manufacturing front through production linked incentives scheme, as the country tries to serve businesses looking at opportunities beyond China.
As economies and businesses look to recover from the impact of COVID-19 pandemic, there will be markets and sectors with new opportunities to grow trade, the study said.
"Businesses in India and across the world have faced unprecedented challenges over the last few months. Looking ahead, they need to look for new growth avenues and build more resilience," the bank's managing director and head of trade for India and South Asia Gaurav Bhatnagar said.
He said India offers an "unexplored potential" of USD 21.1 billion for global exporters and its exporters look at a USD 16.8 billion opportunity with the key trading partners.
Thailand and Germany are the largest markets with export potential for Indian businesses' perspective, representing an opportunity of USD 2.6 billion each, as per the study.
From a growth perspective, Thailand is the topmost with an opportunity of 48 per cent of the present exports to the country, followed by Indonesia at 26 per cent and Malaysia at 25 per cent.
The research contrasts actual export values with potential export values - calculated by an economic model - to uncover medium-term opportunities, looking to a post-COVID-19 world as economies begin to reopen, it said.
The scope covers high-potential exports, defined as goods or services where businesses have added value within the borders of their home market, it added.