Kolkata, August 26: Former president Pranab Mukherjee on Monday said exports should constitute one-third of the government's ambitious USD five-trillion economy aim. Mukherjee also said the ongoing trade war between the US and China should give Indian exporters a chance to increase volumes.

"One third of that (USD five-trillion economy target) must come from international trade... The fight between the two giants (US and China) does give Indian exporters a ray of hope. But, that will be for a short while," the Bharat Ratna said at a Federation of Indian Export Organisations event. Mukherjee, however, said the increase in exports from India should come from the inherent strength of the economy, not from external circumstances. India Has Excellent Opportunity to Reap Profits From US-China Trade War, Says Centre.

The former finance minister said that India had long followed the policy of import substitution, which was later "correctly" transformed into that of export promotion. This shift led to higher exports, he said.

Commenting on eastern India, Mukherjee said it will have to be the growth engine of the country, and called for higher contribution of the manufacturing sector in the overall GDP. On Saturday, he had said the government's target of becoming a USD 5-trillion economy by 2024-25 is possible through prudent fiscal management.