Analysis On Export Performance

Presented By: Group 1

Agenda

HISTORY OF INDIAN EXPORTS CURRENT TRENDS OF INDIAN EXPORTS PERFORMANCE ANALYSIS OF INDIAN EXPORT PROBLEM FACED IN INDIAN EXPORT & ITS SOLUTION

LOOKING INTO FUTURE OF INDIAN EXPORT CONCLUSION

Indian Export At A Glance

The Indian economy , the third largest economy in the world in terms of PURCHASING POWER will touch new heights in

coming years.

According to global investment bank by 2035 India would be 3RD largest . Economy of the work just after US and CHINA. It will

grow to 60% of size of the US. Economy

Exports have played an increasingly important role in Indias economic growth in the last two decades. We will analyses the performance of Indias exports and the various economic factors which have contributed to its growth. 80s

It

was

during

the

that

the

government

undertook

expansionary fiscal and monetary policies.

Indian Export At A Glance

The 2nd World war severely impacted the economic stability of many countries, however, Indias economic performance

remained less affected as its GDP continued to grow at 3.5

percent PA while the per capita income averaged at 1.3 percent P.A.

Post 1991, the gradual liberalization of the Indian economy

characterized by such policy reforms created a conducive environment for Indias exports to flourish and evolve into an engine of social and economic growth. Indias susceptibility to international crises became evident when the financial crisis of 2008 had an impact on Indias economic performance.

What We Will Discuss.

We will discuss about Indias export history and changes in its composition over time. Also we will discuss about Indias main

export

commodities

and

investigates

the

relevance

and

competitiveness of these commodities in major export markets. It finally highlights key policy changes which could impact local

production as well as international demand for these exports in

the current trends.

Then we will do a small analyze on Indias export performance, including a discussion of the evolution in the structure of Indias exports over time, followed by the sectorial composition and relative competitiveness of Indias exports.

What We Will Discuss.

Later we will discuss on Indias manufacturing sector performance with special focus on three commodities and related trade policies

with problems faced by it.

Finally we will summarize the main findings of this presentation with what Future holds and conclude with.

History Of Indian Exports

The History of India economy can be broadly divided into three Phase:

Pre-Colonial
Colonial Post Colonial economy history of India since INDUS

Pre - Colonial :- The

VALLEY civilization to 1700 AD can be categorized under this phase. During this Phase Indian economy was very well

developed. It has very good trade relation with other parts of

world. Before the advent of the East India Company each village
in India was a self sufficient entity and was economically independent as all the economies needs were fulfilled with in the

History Of Indian Exports

Colonial :- The arrival of East India Company in India caused a

huge strain to the Indian economy and there was a two way depletion of resources, The British would buy raw materials from India at cheaper rates.

And finished foods were sold higher than normal price in Indian

market. During this phase India's share of world income declined

from 22.3% to 38% in 1952

Post Colonial Indian Economy :- After India got independence

from colonial rule in 1947, the process of rebuilding started

various policies and schemes were formulated. 1st 5 years plan came in to implementation in 1952. there 5th year plan started by Indian government, focused on the needs of the Indian Economy.

History Of Indian Exports

Indias Economy is bound for slower growth. In recent months, Indian government has introduced Pro business economic

reforms and outlined plans to increase. Spending on capital

investment and large scale social programs. In the first three months of 2013 the GDP growth slowed to 4.8% and it is likely to

go down further due to weak Consumption, Capital, investment &

decline government spending.

History Of Indian Exports

Mughal Empire

1525 1550 : Second largest economy in the world. GDP about 40 per cent that of China.

1575 - 1600 17.5 million

: The annual revenue of Emperor Akbar's treasury was at

1625 1650 Emperor ShahJahan's treasury reported annual revenues exceeding 25 million and GDP - 80 percent that of China. 1650 1700 GDP - About 90 per cent that of China. Emperor Aurangzeb's exceeded 100 million in 1700 (twice that of Europe then). India emerged

as the world's largest economy followed by China and France.

Nawabs, Marathas & Nizams

1725 1775 Mughals was replaced. China was the world's largest

economy followed by India and France.

History Of Indian Exports

Nawabs, Marathas & Nizams

GDP - about 80 per cent that of China. The Maratha empire expanded to

almost 250 million acres while the Nizam's dominion expanded to almost
125 million acres. GDP - about 70 per cent that of China.

British East India Company

India's share of the world income went from 24.4% in 1700 comparable to Europe's share of 23.3%, to a low of 3.8% in 1952

British Crown Rule

1850 1875 The GDP - 30 per cent that of China, UK cotton exports reach 55 per cent of the Indian market 1875 1900 GDP- 20 per cent that of the USA. 1925 1950 The GDP of India-7 per cent that of the USA.

Current Trends Of Indian Exports

Merchandise exports from India have exhibited a perceptible change over a period of time. This is evident with the fact that

exports were almost insignificant until the initiation of trade

reforms in 1991.

But, after the commencement of reforms exports started rising

gradually. In 1991-92 Indias exports stood at $20 billion which

increased to $45 billion in 2001-02 and increased to $ 302 billion in 2011-12.

Indias exports in terms of value increased from $ 18.26 billion in 1991-92 to approximately $ 46 billion in 2001- 02. As an annual percentage change most of the time Indias export growth rate upward trend except during 1996-99 and 2001-02.

Current Trends Of Indian Exports

This is because of the Asian Crisis and attack on World Trade Centre in US which reduced the export growth from 20.5% in

1995-96 to -3.9% in 1998-99 and -1.7% in 2001-02.

This negative export growth rate is regained in 2002- 03 and in fact India was able to mark double digit growth rate (20.4%) in the

year 2002-03. Since then, annual percentage growth of Indias

exports remained increasing and touched the peak growth rate of 30 % in 2004-05.

Current Trends Of Indian Exports

Current Trends Of Indian Exports

Indias annual export growth rate which was 29 % in 2007-08 started declining and touched all time low annual average growth

rate(13%) in 2008-09 and tuned negative ( -20.3) in 2009-10. This

type of situation was not witnessed in the last 24 years.

Even in 2001-02 and 1998-99 when export growth rate was

negative, such a long period of continuous negative monthly

growth was not recorded. In order to arrest the pre crisis growth of exports several measures were under taken by the government .

As a result of these steps and because of the low base effect, India's export growth in 2010-11 reached an all time high since Independence of 40.5 per cent.

Current Trends Of Indian Exports

Though it decelerated in 2011-12 to 21.3 per cent, it was still above 20 per cent and higher than the compound annual growth

rate (CAGR) of 20.3 per cent for the period 2004-5 to 2011-12.

Overall, CAGR of Indias exports remained 9.5 percent during the first decade of reforms, while the second decade of reforms

reported approximately 19 percent compound annual growth rate

of exports.

This analysis shows that Indias export performance reported

better performance in the second decade as compared to the first

decade of reforms.

Its growth also remained almost positive except in few years when certain external incidents occurred at the international level.

Current Trends Of Indian Exports

The table shares the Indias export - 1991-92 TO 2011-12 (US $ billion).
Years
1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000

Exports (US $ billion)

18.26 18.86 22.6 26.8 32.3 34.1 35.6 34.2 38.2

Annual % Change
3.3 19.8 18.6 20.5 5.6 4.4 -3.9 11.7

2000-01
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

45.45
44.7 53.8 66.2 85.2 105.1 129 166.1 182.6 178 251.1 303

23.5
-1.7 20.4 21.1 30.8 23.4 22.6 29 13.6 -20.3 41.1 21

Current Trends Of Indian Exports

During the first decade of reforms, the conventional sectors viz. agriculture, textile, gems and leather products used to account the large share in total exports whereas non-conventional sectors viz. engineering goods, petroleum products had relatively less share in the total exports.

Current Trends Of Indian Exports

The above table shows that Engineering Goods exports that comprised of 14.8 % share in Indias total exports in 1996- 97 have performed quite

well; its export share eventually increased and reported 22% share by the
end of 2012. With this the sector has moved to the 1st rank from the 4th rank in the respective period. The export growth of this sector is mainly due to increased exports of two major items - machinery and instrument

and transport equipment.

Another star performer in recent years is the group of refined Petroleum products whose share increased from 1.4% in 1996-97 to 18.2% in 201112. On the basis of its increased share in Indias total exports its rank also

moved 6 ranks up from 8th in 1996-97 to 2nd in 2011-12. The export

surge of this commodity has been driven mainly by entry of private enterprises like Reliance Industries, Essar Oil in Indian refining industry.

Current Trends Of Indian Exports

Gems and Jewellery, though the industry today is greatly affected as a result of recession and the sudden decline in demand, yet it is able to

maintain its share ( 15 %) and ranking in Indias exports which is not

much varied from its position in 1996-97.

Agriculture sector has exhibited a significant fall in its share in Indias exports. The sector used to account 20% plus share in total exports of

India and at the 2nd rank in 1996-97. But, by the end of 2011-12 its share
is reduced to 12.3% with 5th rank. Fluctuating commodity prices, sudden production drops, rising domestic consumption have affected the performance of agricultural sector of India.

Chemicals and related products constitute another important area where

its share in total exports (12%) and Rank (5th) almost remained same over the period of time.

Current Trends Of Indian Exports

Pharmaceuticals to dyes and from plastics to rubber products. Most of these items have done well however, pharmaceutical products - bulk

drugs, intermediates, generics and formulations have been the major

export items of chemical sector.

Textile sector, including apparel, which was the largest export sector has reported steady fall from 25 % share in total exports in 1996-97 to 9.1 %

in 2011-12. Thus, the sector which used to account one fourth shares is
left with single digit share in Indias total exports and accompanied by decelerated its ranking from 1st in 1996-97 to 6th in 2011-12. This is mainly due to declined orders from US and Europe market amid global

crisis and increased competitiveness of China, Bangladesh, and Vietnam

in textile sector. The share of ores and minerals did not exhibit any significant fall in its share and ranking in overall composition of exports.

Current Trends Of Indian Exports

Exports of leather and leather products, another traditional and laborintensive export sector, has also shown declining trend. Its share in total

exports almost halved from 4.8 % in 1996-97 to 1.5% in 2011-12.

Moreover the sector reduced to rank 8th in the top 10 principal commodities of exports. The major reason of such fall down in the industry is lack of diversification in different category of footwear viz.

informal footwear or childrens shoes moreover Indias production

capacity and its cost is not even at par with its competitors like China.

This is obvious from the above analysis that there is a structural shift of Indias export composition from the traditional commodities to the

nontraditional commodities. Majorly, engineering and petroleum sector

has exhibited the significant rise and agriculture and textile sector has reported steady fall its share and ranking in Indias export.

Current Trends Of Indian Exports

Export Direction Trends

Indias major trading partners are also changing. The share of developed

countries (EU and North America) which was approximately 58% in

Indias total exports till the end of first decade of reforms fell to 35 % and 29 % in 2007-08 and 2011-12.

Whereas the share of developing countries ( Asia, Africa and Latin

American) which used to account 29% share in total exports by 19992000 reported 40% share in 2011-12.

OPEC countries also exhibited a significant increase from 10% share in Indias total exports to about 20% in 2011-12.

Thus , the countries comprising more than half of total exports has marked one third share in total exports of the country and the reverse trend is exhibited by the Asian and Middle East countries.

Current Trends Of Indian Exports

Export Direction Table

1991-92 57.86 27.02 17.41 44.43 10.51 2.92 1995-96 55.69 27.39 18.32 46.01 8.34 1.63 1999-00 57.62 25.89 24.28 50.17 5.77 1.68 2003-04 46.41 21.76 19.19 40.95 3.73 1.73 2007-08 39.45 21.17 13.49 34.66 3.17 1.62 2011-12 33.81 17.25 11.94 29.19 2.99 1.64

Group / Country I. OECD countries A. EU B. North America Total(EU+NA) C. Asia and Oceania D. Other OECD Countries

Current Trends Of Indian Exports

Group / Country II. OPEC III. Eastern Europe IV. Developing Countries A. Asia 1991-92 8.74 10.93 20.08 16.88 1995-96 9.69 4.21 28.92 22.98 1999-00 10.64 3.47 28.08 21.88 2003-04 14.95 2.44 35.69 28.86 2007-08 16.57 1.13 42.46 31.60 2011-12 19.03 1.06 40.72 29.59

B. Africa
V. Others / Unspecified Total Trade

2.47
0.07 100.00

4.76
0.06 100.00

4.30
0.10 100.00

4.85
0.52 100.00

7.51
0.39 100.00

6.73
5.38 100.00

Performance Analysis on Indian Export

A publication on India's trade and investment by Exim bank highlights the trend in exports moving towards southern countries,

particularly in the Asia and Africa regions.

Asia is a key destination of India's exports - in 2001-02 Asia's share stood at 40.2% but in 2011-12 it grew to 51.6%. Europe

however has seen a decline in its share, down to 19% in 2011-12

from 24.8% in 2001-02.

India's key exports in 2012 were petroleum products which

generated $56bn, followed by gems and jewelry with $47bn.

Pharma

products,

transport

equipment,

machinery

and

readymade garments are also big exports for India.

Performance Analysis on Indian Export

The 2012 data shows that the United Arab Emirates (UAE) was India's biggest export market, closely followed by the USA.

The latest data available from the Indian Government's Ministry of

Commerce and Industry covering April-September 2012 shows the US to have slightly overtaken the UAE.

The UK is the eighth biggest

export market for India and held 2.9% of the market share in

April-September
`

2012.

Performance Analysis on Indian Export

Top Importers from India, by value of trade in US$m and share of each country.

Country USA UAE SINGAPORE CHINA HONG KONG SAUDI ARAB

2012-2013 (Apr- Sep) 19704.05 18601.71 6652.77 6417.32 6137.9 4636.29

%Share (2012-2013) (Apr- Sep) 13.87 13.09 4.68 4.52 4.32 3.26

NETHERLANDS

4458.24

3.14

Problems Faced In IE & Its Solution

Despite many decades of tariff reduction under the acts of the General Agreement on Tariffs and Trade (GATT) and the World

Trade Organization (WTO), trade barriers remain high.

Although world average import tariffs have fallen from over 20 percent in the 1980s to less than 10 percent in 2009, the average

tariff equivalent of trade costs for industrialized countries is 170

percent.

There are a large number of studies focusing on export barriers,

mainly non-tariff

barriers (NTBs) that manifest as behind-the-

border barriers to trade.

Studies show that the Indian industry in general has had to face competition from both domestic and foreign firms.

Problems Faced In IE & Its Solution

Finally, customs procedures and valuation rules are also identified as NTBs which have the potential to adversely Impact on

exporting activity (World Bank, 2009).

We find that firms which are closer to ports perceive transport costs and corruption are less important barriers than firms which

are further away.

On the other hand, firm size, exporting experience and whether the firm is in the textiles or leather industry have no significant

impact on the firms perception of the level of export barriers.

Problems Faced In IE & Its Solution

Problems faced in Exporting Fruits

Constraints for Exports

Lack of exportable varieties Lack of post-harvest infrastructure High cost of obtaining certification for exports

Supply Chain Issues

Uneconomic scale of operation Lack of consistency in supply, quality and cost competitiveness Inadequate and inappropriate storage and distribution infrastructure

Lack of technical support for the agro-industrial sector

Problems Faced In IE & Its Solution

Problems faced in Exporting Fruits

Market Access Issues

Non-Tariff Barriers Import Policy Barriers Standards, Testing, Labeling and Certification requirements Anti-dumping & Countervailing Measures Export Subsidies and Domestic Support Government procurement Short product life cycle Lack of brand image

Problems Faced In IE & Its Solution

Problems faced in Exporting Fruits

Technological Constraints

Majority of holdings are small and un-irrigated Unproductive plantations needing replacement / rejuvenation. Low productivity of crops due to inferior genetic stocks and poor management.

Inadequate supply of quality planting materials of improved varieties

High incidence of pests and diseases Heavy post-harvest losses

Problems Faced In IE & Its Solution

Problems of Marketing and Export of Indian Spices

Low Productivity: Low productivity in the Spice sector is one of the

serious problems facing the Indian Spice industry.

Poor Product Quality: Poor product quality at farm level is another problem hindering reasonable price realization by the producer. Insufficient infra-structure facilities for cleaning, scientific methods of

processing, storage and packing.

Insufficiency of Legal Provisions: The regulations under AGMARK are only optional and not mandatory and are not even comprehensive. The major non-tariff trade barrier that seriously affects Indian export of spices is the presence of pesticide residues, expressed as Maximum Residue Limits (MRLs).

Some

Indigenous

Varieties

are

disappearing

The

rapid

disappearance of some indigenous varieties of spices due to mixing of

Problems Faced In IE & Its Solution

Poor Post-harvest Handling : Post-harvest operations involve drying, curing and primary packing. This reduces problems of contamination. Scientific post-harvest handling has yet to come to the agricultural operations in Uttaranchal. Our natural comparative advantages in production are being whittled away due to the poor quality of the produce.

Insufficient Mechanization of Spice Production and Processing : Lack of desired level of value-addition at the primary processing level results in lesser returns to the farmers and farm laborers.

Competition : India is facing stiff competition from other producing countries that supply spices in whole form. Most of these countries have

no domestic market for the spices they are producing, forcing them to sell
their produce even at cost price (examples cardamom from Guatemala, pepper from Vietnam, cloves from Indonesia).

Problems Faced In IE & Its Solution

Agricultural Extension is not Market-oriented : Extension is not focused on the needs of the market, especially the export market. The available market information service is limited to a few areas and to a few sections and often fails to recognize indigenous methods and factors to get a competitive edge in export of spices.

Inadequate Surplus for Exports : Of the 31.50 lakhs tonnes of spices produced annually, (excluding mustard), India could hardly export 7.58 per cent. There have been severe shortages of exportable varieties of spices in certain years. The major reason is burgeoning domestic demand. Demand for spices from the upwardly mobile middle-class is on the increase. Changing eating habits and the population explosion are also factors.

Problems Faced In IE & Its Solution

Rice Export From India:

India is facing stiff competition in the world markets for export of rice.

Besides, there are many domestic problems for rice exporters.

As per the state Govt. policy, various taxes are imposed on rice exports, such as the states are imposing Purchase Tax (on indirect export), Market Fees, Rural Development Fund, Administrative Charges etc. These taxes are rendering the pricing of rice internationally in competitive. Thus, Indian rice becomes costlier in the international market as compared to other competing countries. Pakistan rice meant for exports specially the branded ones, duties are extremely low or duty free.

There is lack of infrastructural facilities. Many times exporters, when they carry their stock to sea port and if not loaded for unknown reason, exporters do not find proper place to store their stocks which adds additional expenditure.

Problems Faced In IE & Its Solution

Rice Export From India:

Due to increase in the cost of inputs used for paddy cultivation the

production cost goes up and the Minimum Support Price (MSP) for
paddy is enhanced every year by the govt. of India to safeguard the interest of the growers. When paddy is converted to rice, it becomes costlier and thus makes it internationally uncompetitive.

Rice production meant for export purpose is having subsidy in other

countries, which reduces the cost of production and thereby reducing the cost of rice. Therefore, the export price of rice of such countries is more competitive in the international markets compared to Indian rice.

The major rice producing nations have decreased the price to capture the international markets. Much of basmati rice export prospects have been lost in the recent part to other competing countries like Pakistan etc because of high prices.

Problems Faced In IE & Its Solution

Rice Export From India:

Rice mills have not been fully modernized to ensure high milling recovery

and reduce the percentage of broken rice.

Lack of proper arrangements for production of sufficient quantity of quality seeds needed for cultivation of rice for export purposes.

The export is also suffering much due to the competition from other exporting countries like Thailand, Vietnam and Pakistan because the cost of production in these competing countries is low as compared to the cost of production in India.

Post-harvest handling of produce is another important aspect. Generally, farmers are harvesting the crop at different moisture levels and keeping the produce at higher moisture level for a longer period will impair the intensity of aroma.

Problems Faced In IE & Its Solution

Gem and Jewellery sector:

Large-scale presence of the unorganized sector in this industry

Setting up of branches by Indian, Belgium & Israels diamond processors

in China to capitalize on cheap labour.

Similar threat can be expected from African countries in the near future, which have invested in developing the domestic (diamond) processing industry, in order to create better employment possibilities.

Govt Initiatives to encourage gem and jewellery exports:

Government introduced the replenishment (REP) license in the sixties under which producers could import the relevant raw materials without an upper limit on foreign exchange.

1997-2002 Foreign Trade Policy simplified a number of procedures to export diamond jewellery.

Problems Faced In IE & Its Solution

Govt Initiatives to encourage gem and jewellery exports:

Customs duty (of 45 per cent) on rough gemstones and semi-processed

diamonds was abolished by the Union budget of 2003-04. The import tariff
on cut and polished diamonds and gemstones was also reduced from 15 per cent to 5 per cent.

Further reforms were implemented in 2005, which included an exemption

on the service tax levied on the production related to the manufacturing of

cut and polished diamonds, gemstones, and other forms of (gold and other precious metal) jewellery.

Foreign direct investment up to 74 per cent (under the automatic route) was approved by the government, for the exploration and mining of gemstones and diamonds

Problems Faced In IE & Its Solution

Govt Initiatives to encourage Gem and Jewellery exports:

More recently, the Union Budget of 2008-09 reduced the net profit rate

from 8 per cent to 6 per cent for institutions which were engaged in the
diamond manufacturing and trading sector (under Benign Assessment procedure).

The most recent foreign trade policy (2009-14) has implemented a new facility to permit the import of cut and polished diamonds (on a consignment basis) for the purpose of grading and certification.

The recent National Manufacturing Policy has identified the gems and jewellery sector as one of the thrust areas given its potential for employment creation.

Problems Faced In IE & Its Solution

Ready Made Garments (RMG), Cotton Industry:

Indias textile industry, in particular, is the second largest textile industry in

the world after China. The Indian textile industry contributes nearly 14 per
cent to industrial output and 17 per cent to aggregate export earnings. This industry also contributes to about 4 per cent of GDP along with 9 per cent of total excise collections.

This industry employs the largest number of workers after agriculture,

around 35 million workers, and an additional 50 million people who are typically engaged in allied activities.

For instance, India is the largest producer of jute, the second largest producer of Silk and the third largest producer of cotton (and Cellulosic Fibre/Yarn). Consequently, this industry is visible in global trade, and contributes to 12 per cent of world exports of textile fibre and yarn, and up to 25 per cent of world trade in cotton yarn.

Problems Faced In IE & Its Solution

The apparel industry is one of largest foreign revenue earners and in aggregate, contributes 12 per cent of Indias total exports.

Problems faced by the textile industry:

The quality inconsistency prevalent in the textile industry, in addition to an appreciating U.S. dollar has had an unfavourable impact on the competitiveness on Indias cotton exports.

The purpose of the ATC is to provide developing countries more access to markets of developed countries.

But countries like China, Korea and India (with a strong textiles production

base) remained at a disadvantage as they had the capacity to produce

and export more, but are restricted by the quotas.

Problems Faced In IE & Its Solution

Govt Initiatives to encourage cotton exports:

Technology upgradation Fund Scheme (TUFS) was launched in 1999

which enabled firms to access low-interest loans for technology

upgradation. The TUFS scheme has been continued and is part of the Eleventh Plan where its allocation has been raised.

The Indian government has also approved special schemes for Integrated

Textile and Apparel parks (SITP). The government adopted a cluster

approach for the handloom sector in 2005-06, where 120 clusters were selected for the provision of technical assistance and were provided subsidies for technology upgradation, in addition to marketing support.

Foreign Direct Investment (FDI) of up to 100 per cent is permitted in the Indian textile industry. In 2000, the textile policy was designed to remove the bias in policy towards the small and medium sized firms and promote modernization.

Problems Faced In IE & Its Solution

Govt Initiatives to encourage cotton exports:

Over time, the government has made provisions for incentives by

reducing the excise duty and the basic custom duty on importing of raw
materials.

Policies are designed and implemented in a way to ensure the modernization of weaving machineries.

The Indian Government has provided incentives to manufacturers for establishing export zones or export parks, in the form of exemption from certain labour regulations and through provisions for land purchases, credit and taxes.

Problems Faced In IE & Its Solution

Electronic Goods & IT Hardware Sector of India:

This industry has registered strong growth in the last ten years and has

increased its contribution to Indias exports. The key segments of the

Indian electronics sector include consumer electronics and telecom equipment which are the largest and cumulatively represent nearly 27 per cent of total production

Challenges:

The growing presence of global multinational companies in India and increased outsourcing of manufacturing by Indian as well as global equipment manufacturers

Govt. Initiatives

Industrial licensing has been virtually abolished from the electronics and IT hardware sector.

Problems Faced In IE & Its Solution

Govt. Initiatives

The National Skill Development Corporation has estimated that the industry will employ between 3-3.2 million skilled workers by 2022 and 70 per cent of them are likely to be absorbed into the manufacturing and servicing support.

The Indian government signed the ITA-I agreement which abolished all the custom duties to facilitate trade in this sector.

State-level governments have continued to encourage joint ventures as they provide the advantage of established contracts, financial support and

a distribution-marketing network for the Indian partner

The Software Technology Parks of India (STPI) Scheme in particular has been a major success.

Looking Into Future Of Indian Export

The magnitude of exports to a large extent is linked not only to the size of the economy but also in the changing pattern of the

economy in favor of tradable goods in future. We will discuss few

of them,

While the services sector has registered remarkable growth and

contributed significantly to Indias GDP, the manufacturing sector

has grown at a comparatively slower pace.

The overall performance of the Indian manufacturing sector has

widespread implications for various aspects of the economy;

employment, being one of the chief areas of impact.

Looking Into Future Of Indian Export

Since this sector generates large scale employment for low and medium skilled workers, it is imperative to develop features which

will create a conducive environment for industries to grow further.

In particular, the presence of the unorganized component within industries reduces the benefits that can be derived from

economies of scale. Such constraints cumulatively prevent the

manufacturing sector from achieving its potential.

Conclusion

From the above study we can say that Indias exports, despite of adverse external environment, has grown manifold and changed

significantly in terms of its composition and direction.

Scenarios that explains why India with enough potentials still lag and has trivial share (1.3%) in global exports.

Insufficient action
Policy logjam. Development model unlike East Asian nations financial model

Inclusive growth neglected Huge current account deficit which has recently touched 5.2% of GDP , requires urgent steps to avoid its negative consequences on the economy.

Conclusion

In terms of number of markets also, 70 percent of our exports are concentrated majorly to 14-15 countries.

Growth performance of World economy and key trading areas and

especially China.

For India to be a significant exporter, first the infra bottlenecks to be addressed, produce surplus to surpass domestic demand, conducive environment for enough tools to financial organizations create FDI, technological up gradation, provide for providing loans at interest

rates that are globally competitive and also India has to participate actively in the multi trade negotiations to secure Indian interests and make the level playing field less uneven..