Web Hosting

इंडियन आवाज़     26 May 2019 04:27:52      انڈین آواز

India fine-tuning its policy to boost exports



At the juncture when India’s is once again emerging as the fastest growing economy in the world, the country is now witnessing the disturbing phenomenon of increasing uneasiness on the external front of its economy.

It is a matter of concern that the ongoing widening of trade deficit caused by rising imports and sluggish export growth, which in turn is ballooning the Current Account Deficit (CAD) thereby putting pressure on the country’s foreign exchange reserves.

While on hand the alarming depreciation of Rupee vis a vis US dollar is causing havoc in India’s external front of the economy, the export sector is expected to get some relief with export from India becoming competitive in the pricing front. Still relief is not expected to be significant.

In the face of declining trade and slow global economic growth India is steadfastly working out a strategy to boost its crucial export sector. As exports hold key for accelerating India’s growth, the Indian Commerce Ministry keeping the changing scenario in the global trade arena in mind; is now reorienting various export promotion mechanisms to inject growth momentum into several segments of India’s export basket. These have emerged as major foreign exchange earners.

India’s Commerce and Industry Minister Suresh Prabhu has said “there was predictability in doing business globally in the past six seven decades but we are seeing a dramatic change in global trade in the past few months.”

The global recovery is fragile and there are some elements of risk from threats such as confrontational trade stances that major countries have taken against each other. India is now increasingly feeling the imperatives to reshape its trade strategies to boost its export.

Trade strategists say sectors such as metals, machinery, plastic and marine products may drive India’s export growth in 2018-19 as a diverse set of sectors upstage traditionally strong exchange earners such as gems and jewellery and textiles in the growth charts.

Statistics reveal export spurt in 2017-18, whereby India successfully managed to achieve more than US $ 300 billion worth of outbound trade after two years, was supported by a consistent annual rise in commodities and finished goods from these sectors.

The tally for total exports stood at a revised US $ 303.66 billion for 2017-18, above the government’s target of US $ 300 billion. In 2016-17, this was US $ 275.85 billion. The near 10 per cent growth was led by an over 113 per cent growth across principal commodity groups where India has not historically enjoyed high export competitiveness.

US continues to be the top destination for India’s engineering products in the capital goods sector, registering an impressive 44.3 per cent growth in the last fiscal year. US is also the largest importer of Indian ‘industrial machinery’ for the year with 25 per cent year-on-year growth, followed by the UK with a 44 per cent increase in shipments. Bangladesh and Germany were other key markets for Indian industrial machinery. Exporters are now expecting more support from the government at the policy level, including faster clearance of tax refunds.

Experts feel India’s export basket will focus more on marine products which continue to see a persistent rise. Comprising mainly of shrimps, prawns and fish; India’s aquatic exports stood at US $ 7.38 billion in 2017-18 and have seen three consecutive years of growth. The government is in the process of preparing a comprehensive roadmap to double exports of marine products, said Mr. Prabhu, the Commerce and Industry Minister. This will include measures to strengthen aquaculture production in states, potential collaborations, marketing and integration of supply chains.

The government is also focusing on inland fisheries, which have recently made large strides in exports, as a priority area, and is aiming to create a system for all the coastal states to work in sync in order to develop the budding sector.

With India emerging as the fastest growing economy in the world, major countries are also keenly watching India’s trade policies. India is presently known as the most important players in the global economic landscape. Its trade policies, government reforms and inherent economic strengths have attributed to its standing as one of the most sought after destinations for foreign investments in the world. Also, technological and infrastructural developments being carried out throughout the country, this augurs well for the trade and economic sector in the years to come.

With India striking important deals with Japan, Australia and China, the external sector is increasing its contribution to the economic development of the country and growth in the global markets. Moreover, by implementing the five year Foreign Trade Policy (2014-19), India’s share in world trade is expected to double from the present levels.


Leave a Reply

Your email address will not be published. Required fields are marked *



Major victory for NDA in Bihar

File photo Anwarul Hoda / Patna As all the results have been declared in Bihar, out of 40 seats BJP has bagg ...

Haryana fully backs Modi, gives all 10 Lok Sabha seats to BJP 

AMN / CHANDIGARH The BJP has registered major victory as it has won all 10 Lok Sabha seats in Haryana. Union ...

Punjab, a ray of hope for congress in North India

By Onkar in Singh The results of all the 13 Lok Sabha seats in Punjab have come in. Congress which has been r ...



BOXING: India bags 57 medals at India Open International tournament

GUWAHATI India bags a total of 57 medals including 12 Gold, 18 Silver and 27 Bronze at India Open Internation ...

Boxing: Mary Kom, Shiva Thapa Amit Panghal fight their way to gold

Harpal Bedi / Guwahati ix-time world champion Mary Kom was crowned the 51kg champion while Amit Panghal (52kg ...

Hockey: Indian women clinch 3-match series beating S Korea 2-1

  By Harpal Singh Bedi India survived some anxious moments before putting it across host Korea 2-1 to r ...



116-year-old Japanese woman is oldest person in world

  AMN A 116-year-old Japanese woman has been honoured as the world's oldest living person by Guinness ...

Centre approves Metro Rail Project for City of Taj Mahal, Agra

6 Elevated and 7 Underground Stations along 14 KmTaj East Gate corridor 14 Stations all elevated along 15.40 ...


66th National Film Awards to be declared after General Elections

  The 66th National Film Awards will be declared after General Elections, 2019. In a statement, Informat ...

Priyanka Chopra is among world powerful women

AGENCIES   Bollywood actress Priyanka Chopra Jonas has joined international celebrities including Opr ...



Sahitya Akademi demands Rs 500/- from children for Workshop

Andalib Akhter / New Delhi India’s premier literary body, the Sahitya Akademi, which gives huge awards, p ...

Noted Urdu writer Jamil Jalibi is no more

  Author of the seminal history of Urdu literature, editor of one and founder of another eminent literar ...

@Powered By: Logicsart