Trade Imbalance
The new government will have to overhaul the trade framework if India is to play any meaningful role on the world stage.
by Anilesh S Mahajan
May 27, 2019
4 minutes
As the government starts its second term, it will have to focus on one area where it did not deliver in the last term boosting exports. In 2018/19, India's merchandise exports hit a record $331 billion, but did not cross the government's target of $350 billion. More importantly, they were just 5.3 per cent over the $314.4 billion achieved in 2013/14. Also, the export to GDP ratio in 2018/19 was 12.2 per cent, almost half the 23 per cent achieved in 2013/14. What should the government do this time round?
It needs to overhaul the trade policy. The focus has to be on goods and services where India is competitive. There is a need to widen the portfolio of products in the export basket
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