India’s Export Policy: Trends and Prospects

The present book analyses the trends and prospects of India’s exports and export policy since 1970. Our analysis shows that the growth of India’s exports was slower than that of world exports and as a result India’s share in world exports declined consistently since 1970. Slow growth of India’s exports was largely attributable to commercial and fiscal policies adopted by the Government which remained biased against exports. A brief analysis of the impact of post 1991 trade liberalization measures on exports are also provide in the study. Higher export growth and improved share in world exports during the ‘nineties’ was made possible due to reorientation of India’s trade policy during the reform period. Trade policy changes undertaken during 1990s aimed at not only sharp reduction in customs tariffs, but also included phasing out of quantitative and other type of trade restrictions and the adjustment of exchange rates. The devaluation of the rupee in July 1991 and the transition to the market-based exchange rate were aimed at enhancing the price competitiveness of our exports. An analysis of the broad trend of movement in some of India’s major export commodities is also provided in the book. Calculation of correlation coefficient between domestic production and export of the major exportable commodities shows an important fact that domestic demand for major exportables has been increasing. But rise in domestic production of exportables was not high enough to create adequate export surplus. It is necessary to identify the problems faced by exporters and try to remove them. The study will help in designing of suitable trade policies and micro strategies for promoting export growth. Thus reading of the book is essential for policy makers, researchers and students.