india export performance and achievements

India export performance and achievements

Performance of exports in 2010-11 has been remarkable achievement of Indian economy against target of 200 billion U.S. dollars but actual export turnover stood at over 245 billion U.S. dollars exceeding the target nearly 25 %

Actually except 2009-2010 when exports fell 4.7 percent during global economical crisis. Our exports have been doing well for quite sometime. Between 2003-2004 and 2008-2009 average annual export growth in dollar terms has been 23.4 % and exports nearly tripled from 63.8 billion dollars to 185. 2 billion dollars. And now we have reached 245 billion dollars, which together with imports makes a trade turnover of nearly 600 million dollars.

This can be reasonably projected as the emerge of India as  a major fast growing economy.

“ we can add some extra effort, and achieve average annual growth of 25 % we can exceed a turnover  600 billion dollars by 2014-2015 by exports alone. This will place India as major exporting nation or more significantly , major trading nation, with strong clout in global economy.

We may still have a negative trade balance, but that does not matter really. On contrarily our image as an economy with more than a trillion dollar trading interests, with open internal market, might actually be enhanced.

For a large trading nation, we could be, trade deficient is not matter of concern really, as long as capital inflows, I presume are positively co-related. For the present we need not bother about balance of trade not at least till our current account position is comfortable.

For purpose of maintaining comfortable current account balance, I feel it is important for us to ensure steady high growth in export services. A surplus on the invisible account on merchandise account.

What we need to appreciate at the moment is the  fact that finally Indian exports have  come of age and broken the barriers to entry into global markets. Now we are in high league of exporting nations.

This we have been able to achieve  it may be mentioned, without pursuing East Asian type led growth model wherein governments were highly aggressive  on  exports defense on imports. We on contrarily have perused a strategy of export push while opening our domestic market to global competition . It has been a perfect working of globalization that allowed free mingling of competitive forces within the domestic economy.

The current export success has vindicated the benefits of trade liberalization. It is with established that trade liberalization helps in pushing exports one hand and strengthening the domestic economy on the other. For us India this has been perfect experiment with globalization as a vehicle for export promotion.

One more aspect of our export performance is that quite different from the case in china, foreign direct investment (FDI) has played little or no role in developing export sector. There have been hardly and FDI flows in our export sector, though we have our version of SEZ and FTZ. It is only recently that we are beginning  to see surge in exports from FTZ and 100% export oriented industry (EOQ) but observed surge is more due to new generation entrepreneurs.

Further unlike in many emerging market economies export success has been achieved without India participating in game of exchange rate manipulation. On contrary India’s exports have grown in spite of some significant appreciation of rupee vis a vis dollar since 2002-03 when average exchange rate was Rs 48.40 to a dollar against average Rs 45.50 in 2010-11. Certainly our exports have found  a way out of a situation of volatility in exchange rate movement.

As this stage one can recall with  some satisfaction how in the  aftermath liberalization policies the Indian industry  had undergone total restructuring and re organization  but only to come up stronger and return as global players.

The export success has much to do with that resurgence of Indian industry subsequent to liberalization. This very well reflected in changing composition of our export basket where some high value non trad able items such as petrochemicals , pharmaceuticals, chemicals automobiles and so as are leading export growth.

In some traditional sectors  as well, like textiles and garments, gems, and jewelery , there has been a significant increase in competitiveness and surge of confidence in exporting community that has  mastered the art of global net working. Traditional items, there has been a noticeable up word shift across market segment.  This product diversification has been yet another driving force behind the resurgence of exports.

Finally one  must talk of one more driving force at work, and  that is where one has to give full credit to government. Initially  a lot of concern and anxieties in our minds about implication bilateral free trade agreements (FTAs) and there was some opposition as well. It was for government to take lead and push for several FTAs with countries , it would help diversification of export markets in an patented way. Without such bilateral FTAs, it would have been difficult for India to its export markets. Today our exports are no longer dependent on few advanced  markets only, and are poised to perform even after being subjected to global economic shakes.

With government steering the course on trade and economic relationships with our partners a new relationships has emerged  with the industry which is benefiting our country..