New Delhi, Oct 25 (IANS): Indian should diversify its portfolio of exports both in terms of products and countries, according to a report by PHD Chamber of Commerce and Industry.

It said that exports will not only balance the external sector but will also become a major growth vehicle in the economy and also increase capital expenditure in the economy.

The growth in exports would improve the trade balance and increase the competitiveness of the country in comparison to the global economy in the coming times, it said.

"Efforts should be made to diversify the portfolio of our export products in terms of more countries and also in terms of more products, where India has core competence," it said.

As per the report, India should focus on moving away from imports from China going ahead, and divert trade towards friendly economies, build domestic capacities and significantly scale up indigenous production with a thrust to become self-reliant.

Noting that at the global front, rapid changes are evolving due to disruptions created by the impact of Covid-19, the report said: "This calls for manoeuvring the manufacturing sector to cater to the domestic demand as well as exports with focus on localisation, import substitution and more and more indigenous production to create surplus for exports."