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INTRODUCTION...1 EXPORT CHALLENGE...3 TRADITIONAL EXPORTS..4 STRATEGIES FOR EXPORT........5 INDIAs EXPORT PERFORMANCE........6 MODELS OF EXPORT DEMAND & SUPPLY........7 LIST OF COUNTRIES BY EXPORTS...8 ROLE OF EXPORTS..10 FEDERATION OF INDIAN EXPORT ORGANISATION....................11 EXPORT POTENTIAL OF INDIA IN LIVESTOCK SECTOR.. .13 EXPORT PERFORMANCE OF MANUFACTURED PRODUCTS.14 EXPORT QUOTAS & POLICY CONSTRAINTS.......16 INDIAs EXPORT-IMPORT GROWTH BETTER v/s ASIAN COUNTRIES........17 OVERALL VIEW.................................................................................19 INDIAs EXPORT SECTOR GOING FOR A SLOWDOWN..........21 THE GROWTH OUTLOOK..........22 CONCLUSION........23 BIBLIOGRAPHY....................................................................................24 CASE STUDY........................................................................................25

India's exports have grown much faster than GDP over the past few decades. For example, its exports have grown over 11% per annum while growth in GDP is about 5% during 1970-98 periods. Exports have grown even faster since 1945-95. Several factors appear to have contributed to this phenomenon including foreign direct investment (FDI) which has been rising consistently especially from the early 1990s. By 1997 India became the ninth largest recipient of such investment among the developing economies (World Bank, 1998:20). However, despite increasing inflows of FDI there has not been any attempt to assess its contribution to India's export performance one of the channels through which FDI affects growth.

Indian Export Scene the challenge of exporting:

Exporting is the key to a vibrant economy, but there are quite a few barriers, both tariff and otherwise. India must leverage its inherent advantage of transparency and reliability to foray successfully into foreign markets. In today's globalised and competitive world, the external sector of a country's economy assumes critical importance. In an effort to acquire a fair share of world trade, countries are adopting newer policies and strategies to promote exports. For such emerging markets as India exports are recognised as the prime mover of economic growth. Need to export? The first reason for India to export is to earn revenues. Second, is the notion of prestige attached to it. India is fast emerging as a global economic power and its established export credibility would significantly heighten its status in the global market. Third, as the country intensifies the export effort, business and trade opportunities are bound to open up, which the country can leverage to its

advantage. Fourth, as firms satisfy the varying domestic demands for products, they must see if the various versions are attractive to consumers elsewhere. That is, with the same product range, a domestic vendor may succeed in foreign markets. Such opportunities in the wake of globalisation are becoming incentives for many firms to export. Despite the process of reform and liberalisation, conducting business in India still remains cumbersome and time consuming. And as the global market is vast, sourcing resources, a key to exporting, is becoming easier and affordable. All these factors today generate interest or propel local or domestic producers to go global. As global trade expands, time is opportune for Indian exporters to invest in foreign markets and generate dollars. This can be used to pay for the country's crude oil imports.

Export challenge:

India is recognised as a robust service-based economy; services contribute around 55 per cent to GDP and account for a significant share of world service exports. India has outpaced China in this area. However, in the non-traditional sector, especially in the field of technology-intensive manufacturing, the country has not been able to replicate that success. So, for new and young entrepreneurs, the challenges are many and formidable. India and China are seen as the key drivers of the world economy. At one level, they are in competition and at another they are cooperating with each other through joint ventures to maximise trade opportunities. India's economy could be said to be in a comfortable position today as it has accumulated $160 billion in foreign exchange reserves, clocked industrial production growth of 8 per cent, and generated GDP of $800 billion. In comparison, China has foreign exchange reserves of $850 billion, and GDP of $1.9 trillion, and an economic growth rate of 8-8.5 per cent. But the advantage for India is that it is a low-cost destination for foreign investors and, more important, has a large, English-speaking talent pool; here, again, India has a lead over China. Today, China is perceived as the factory of the world. Its manufacturing sector contributes almost 55 per cent of GDP. India's manufacturing sector is not as vibrant, but it is showing signs of great vitality and rapid progress. Inflow of foreign direct investment and advent of MNCs in large numbers are helping the economy grow bigger.

Traditional exports

India already has a strong base in traditional exports such as textiles, handicrafts, gems and jewellery, and the global demand in these sectors is significant. With the right kind of technology and capital coupled with rich cultural traditions and ethnicity, India can exploit these opportunities. Young entrepreneurs or start-up firms have to develop technology, capital and skill base to be able to export in a big way in these sectors. India's manufacturing sector has a great future even if China is much ahead of India. The total manufacturing export share of India today stands at $70 billion whereas China's is at $700 billion. One of the biggest challenges of exporting is the issue of transparency. China does not score very high on this parameter. The rules and regulations relating to China's exports are not transparent and this acts as a big impediment for the global exporters to transact and operate in China. On the issue of transparency, India has an edge over China, and significantly the world recognises this. It is for the Government to sustain this openness and score over China on this count.

Strategies for export:

Further, the developed world is also intimidated to a certain extent by the economic might of China and is, therefore, looking at India, well

recognised in the international market as a vibrant parliamentary democracy, as an alternative for importing a wide range of technology-intensive manufacturing products. This tag of reliability and transparency can help Indian exporters in a big way. Promotion and substantial use of the "Made in India" brand must be pursued vigorously to capture markets. However, companies need to be alert in this area as the overseas markets are often not quite satisfied with Indian standards in matters of health, safety and environment (HSE). HSE is recognised as a significant non-tariff barrier (NTB) in the multilateral global trading regime. For developing countries this is a significant hindrance to exporting. Maintaining HSE standards on a par with international markets or satisfying the foreign buyer is a challenge for Indian vendors. The manufacturing exports sector needs to adopt diligence, reliability, transparency vies-a-vies HSE norms. Indian companies also need to play up their tag of transparency and develop a system of continuous feedback to their foreign customers. Small and promising Indian companies with a vision to export technology products need to make considerable effort and formulate concerted strategies in planning their entry into the world market. This is a well spread out market that may look daunting but with the right strategies, small vendors can go places too and create a niche for them.

India's Export Performance:

Two notable developments have taken place in India's export front since 1970s. First, as stated earlier its exports have grown much faster than GDP. Second, there has been a substantial change in India's export mix. Several factors appear to have contributed to these

developments, namely the real depreciation of exchange rate, liberalization in investment policy especially from the early 1980s and the provision of export subsidies to reduce the anti-export bias created by the IS policy. Export subsidies took in may form duty drawback, subsidized credit and direct subsidies- which help reduced the bias against exports.Whenever the real devaluation was maintained, growth in exports continued. A sharp devaluation of rupee since the early 1990s has further strengthened export growth although there was some slowdown and or declined in exports during the macro economic crisis of the early 1990s. Export growth also slow down in 1997-98 due partly to the Asian crisis. Indian exports are dominated by manufactured goods which account for about 76% share by 1997-98- increased from 50% in 1970-71 (table3). Four major items (namely gems and jewellery, readymade garments, engineering goods, and chemicals and allied products) dominate its manufactured exports. With the exception of jewellery, all industries have received foreign participation. Engineering goods and chemical and allied products is the recipient of foreign investment since 1970s while readymade garment was open for foreign investment only in the late 1980s.

Models of Export Demand and Supply Functions:

Since export performance is influenced by both foreign demand and domestic supply factors we develop a simultaneous equation model to explain India's export performance. On the basis of conventional trade theory one would expect that the lower the relative price of

India's exports in relation to world export prices the higher the demand for its exports. Hence, a negative link between the relative price of exports and export demand is expected. World income appears to have a positive impact on export demand and the appreciation of the real effective exchange rate (REER) reduces export demand .On the basis of theoretical reasoning one would expect a rise in export supply when the export prices rise relative to domestic prices and vice versa. Increase in domestic demand diverts export supply towards domestic consumption, leading to a fall in exports. This leads us to believe that there is a negative link between domestic demand and export supply. The role of FDI in export promotion in developing countries is ambiguous and crucially depends on the motive behind such investment. If the motive behind such investment is to by pass trade barriers in the host country, then it is highly unlikely that such investment would result in better export performance. However, if FDI is motivated by the country's comparative advantage, then it may contribute to export growth. Thus, the nature of the link between FDI and export performance is not clear cut. Reliable and efficient infrastructure facilities are essential for reducing costs, ensuring timely supply of exports and thereby improving export performance. However, many developing countries including India lack reliable and efficient infrastructure facilities due mainly to under-investment and the public sector intervention. This contributes to higher costs and poor export performance. Thus, we expect a positive link between improved infrastructure facilities and export supply.

List of countries by exports:

Exports Million US$

Ran Country k

Date of Information

World (sum 16,340,000 2008 est.

of all countries) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Germany 1,530,000 2008 est.

China (PRC) 1,465,000 2008 est. United States 1,377,000 2008 est. European Union Japan France Italy 1,330,000

2005 2008 est. 2008 est. 2008 est. 2008 est. 2007 est. 2007 est. 2007 est. 2007 est. 2007 est. 2007 est. 2007 est. 2007 est. 2007 est. 2007 est. 2007 est.

776,800 629,700 566,100

South Korea 458,400 Netherlands 456,800 United Kingdom Canada Russia Hong Kong Belgium Singapore Mexico Spain Taiwan 442,200 431,100 355,500 345,900 322,200 302,700 271,900 248,300 235,500

Saudi Arabia 215,000

18 19 20 21 22 23 24 25 26 27 28 29 30

Switzerland Sweden Malaysia Brazil Austria

201,000 176,500 169,900 160,600 158,300

2007 est. 2007 est. 2007 est. 2007 est. 2007 est. 2007 est. 2007 est. 2007 est. 2007 est. 2007 est. 2007 est. 2007 est. 2007 est.

United Arab 152,100 Emirates India Thailand Australia Poland Norway Ireland Indonesia 151,300 151,000 139,400 137,900 136,100 124,800 118,400

Is the instrumental role of exports in the economic growth process of a country dependent on the favourable world trading environment ?

the observed growth performance cannot be attributed entirely to the growth in export volume. What one can expect to observe in data is that rapid economic growth is more likely to be associated with the growth in export volume. The observed growth performance is the result of both the autonomous shifts in PPF which are not identifiable in aggregate data and the trade-induced shifts which are taken to be influenced by the following factors : (a) The gross elasticity of countrys export volume with respect to the world trade volume. This reflects the degree of success of a given country in exploiting the world trading opportunities. (b) The volume growth of countrys exports which indicates the success of a country in generating exportable surpluses. (c) The net-barter-terms-of-trade which represent the terms of exchange associated with the export volume growth. (d) The income-terms-of-trade which reflect the import-capacity of export earnings which may be taken to contribute to the growth process by relaxing the foreign exchange constraint and by removing specific bottlenecks removable through imports. In the broad framework discussed above, the expected positive association between the rate of economic growth and the volume growth of exports is taken to be mediated through the movement in the netbarter-terms-of-trade and the resulting impact on the income-termsof-trade. All these factors are expected to be affected by the volatility in the world trade environment.


The Federation of Indian Export Organizations represents the Indian entrepreneurs spirit of enterprise in the global market. Known

popularly as "FIEO", this apex body of Indian export promotion organizations was set up jointly by the Ministry of Commerce, Government of India and private trade and industry in the year 1965. FIEO is thus a partner of the Government of India in promoting Indias exports. Every year India earns billions of dollars by exporting various goods and items from the country. The export trade of India is regulated by certain export policies outlined by the Indian government including the products to be exported and the countries with which India can carry out the transactions. The Federation of Indian Export Organizations is the leading export promotion organization of India which works in collaboration with the Government of India. The export business is quite a lucrative business in India. Cruise through the following 10 links to get a clear and complete overview of the export business of India:

Export Business in India:

Talking about exporting, importing and manufacturing business, India goes ahead in all of these areas. India's skilled talent manufactures and exports a great array of products, which make a huge marketplace offshore. Several of the major parts which see India as exporting and manufacturing are:Agriculture Industry - India's financial system is different from others, with farming being its foundation. India exports a huge hunk from its agriculture stock, and various stuffs are heartily valued in the international bazaar. A few goods that reach out to international audience directly from nations farms are Sugar, Tea, Spices, Wheat, Rice, Tobacco, etc. Textile and Apparel Industry - Apparel industry has a unique place in India's export import data bank. After agriculture, textile industry sees India possibly, as the 2nd largest center of exporting to other country. If reviews are to be believed, Indian textile trade creates about 30% of the total exports! Specialist orate that keeping in view the constantly increasing demand of Indian textile and apparel industry, the position of this sector is bound to raise.

Chemical Industry - Chemical trade makes a most important part of the Indian economy, contributing around 7% of the Indian GDP. India is inextricably connected with major chemical manufacturing, then whether it deals with chemical drugs used in medicines, toiletries and soap, dyes and paints or varied types of pesticides. These progression and accomplishments have forced India to take added proposal in the field and hold the competition directly. Home Furnishing goods - Manufacturing of home products like tapestry, curtains, linen, cushions, etc., is not a single countries stance. India on the other hand leads the field by designing excellent textile items that speak their worth. The knitting, weaving and spinning structure of these house-hold furnishing goods showcase India's ethnic and artistic design model that has made an extraordinary place around the world. India earns a good-looking amount with the export and manufacture of Table Linen, Bed Linen, Curtains, Toilet and Kitchen Linen, Carpet and Floor Coverings, and other clothing accessories. Indian Jewelry - Indian jewelry region is completely attributed to the ancient Indian society and civilization. The outstanding gems and jewels that India has under its lap, clubbed with the astonishing artwork, makes it renowned in the international market. India trade jewelry and gems to U.S, UAE, U.K, Hong Kong, Singapore, Belgium, among others nations. Discussed above were the some areas where India has shown its guts in export and manufacturing arena. The Indian export industry is enormous and caters to an ample market. Like any other nation, a big part of India's economy is reliant on its exporting.

Export Potential of India in Livestock Sector: Future Prospects and Some Issues
India is known for its livestock wealth and ranks high among the nations having bovine population. However, despite having huge livestock population, India stands insignificant in the world trade of

livestock products. The recent concerted efforts made by the government in the era of liberalization after opening up of the national economy to the international market have certainly boosted Indias export trade of livestock products to newer heights. The dairy industry of India is already at a take-off stage and the entry of the corporate sector following the liberalized policies of government is bound to complement the efforts of National Dairy Development Board (NDDB) to usher in a white revolution. The most important achievement of the dairy industry is the near-self sufficiency in milk production. Nonetheless, the possibility of India emerging as a potential exporter of various livestock products will largely depend on Indias own ability to exploit her potential in this sector and generate exportable surplus of these commodities.


We first spell out the motivation behind undertakings the comparison of export performance between China and India. The protagonists of the import-substitution orientation in the Indian growth strategy have advanced one important argument against export-orientation that has been undertaken since 1991. According to this argument, small economies (defined by the small size of the population) with limited size of the domestic market have no option but to specialize on the

basis of comparative advantage in order to raise the living standards. On the other hand,large economies like India (defined correspondingly by the large size of the population) possess a potentially large size of the domestic market which can form a sound base for the import-substitution oriented diversified industrial structure. As a result, such large economies derive very limited gains from international trade and hence export-orientation in their growth strategies and hence trade liberalisation is unwarranted. The argument can be easily refuted on the basis of a prior reasoning. One, even the static gains from trade depend entirely on comparative advantage and do not depend in any way on the size of the countrys market.Two, the dynamic repetitive positive-sum game view of international trade makes the gains from trade dependent not on the size of the market but on the interaction between the internal mainsprings of the growth process and external trading opportunities. Even if domestic market size is taken to be relevant, it is noted out long time ago that size of the market depends as much on per capita real income and geography (affecting transport costs) as on the size of the population and that at low levels of real income per capita (which is correctly attributed to the low absolute productivity of labour), the size of the market which, expands as a result of autonomous shifts in the production possibility frontier (PPF) and these, in turn, are reinforced by the trade-induced shifts in the PPF, so that dynamic gains from trade can accrue to the countries with large population with low levels of real per capita income. However, in addition to the a priori reasonings, an empirical demonstration of the view presented in this paper in favour of export-orientation can be presented by undertaking a comparison of export performance between India and China, two of the worlds most populous economies with reference to pace of opening up of these two relatively labour-abundant and natural resource-deficient economies and the consequent changes in their structure of comparative advantage and the diversification in the export basket resulting from the interaction between autonomous and trade-induced shifts in the production possibility frontiers.

Export Quotas and Policy Constraints in the Indian Textile and Garment Industries:
Substantial export tax equivalents exist for Indian textile and clothing exports, especially to the United States. In today`s world, these would have been even higher if domestic Indian policy constraints had been relaxed. In tomorrow`s world, the health of Indias textile and clothing industries may depend on timely relaxation of these constraints. Indias strengths in this sector lie in natural resources and factor endowments raw cotton and cheap labour. The Indian garment industry`s decentralized production structure subcontracting, which is low risk and low capital has served the industry well but has excluded Indian products from the mass market

for clothing, which demands consistent quality for large volumes of a single item. Growth in Indian exports may require a shift to an assembly-line, factory-type system. This would probably require:-No longer restricting garment production to the small-scale sector (and ending other outdated policies). -Making labour policy more flexible -Ending the policy bias against synthetic fibres. - Reducing transaction costs for exports.

Indias export-import growth better vs other Asian countries:

MUMBAI: "In contrast to all other Asian countries, Indias export and import growth actually managed to surprise on the upside. While exports dropped 1.1 % on the year the third consecutive contraction) this was a lot better than the double-digit falls of October and November," said HSBC's senior Asian economist Robert Prior Wandersforde.


According to a note put out by ABN Amro, the decline in incoming new business to Indian manufacturers, from both domestic and

foreign clients, are easing sharply. Even so, data still signalled a marked fall in total new work over the month. Respondents stated that customers were unwilling or unable to commit to new contracts due to global economic and financial difficulties, the report stated. "Indian manufacturers reported leaner order books in January. Uncertainty and falling demand, resulting from global financial and economic problems, were blamed for the lower inflow of new work. Although the seasonally adjusted new export orders index rose after that, almost as sharply as it fell last time, the latest figure still indicated a marked fall in new work from abroad," the ABN Amro report said.

According to ABN Amro, lower workloads in January led companies, in the Indian manufacturing industry to seek cost savings."Employment suffered as a result, and job-shedding was recorded in the sector for the second month running. However, the rate of reduction in staffing numbers over the latest survey month was marginally slower than during December," the ABN Amro report added.

India to miss export target: D&B:

NEW DELHI: India is likely to miss its export target of $200-billion this fiscal as exporters battle increase in credit risks amid slump in demand in the developed economies, global research firm Dun and Bradstreet said.

Exporters have been hit hard as credit risks are increasing besides demand is down significantly. We think in this scenario the country is likely to miss the export target of $200-billion this fiscal, For the current financial year, the trade deficit would be around $121 billion, where in exports would be about $182 billion and imports would be about $303 billion, the research firm said. The outlook is negative in this sector and exports are likely to dip further as there is a crisis of confidence. Though the Government has taken proactive and timely steps but there has been a significant dip in confidence level. The steps taken in the stimulus package were in the right direction and these steps would provide liquidity into the system. But more needs to be done,

Indian exports are steadily underwriting the country's growth story. Year after year, the numbers have been rising at the rate of 20 per cent. According to the department of commerce, merchandise exports for fiscal 2006-07 rose by approximately 25 per cent over the previous fiscal. These figures offer proof of the upward mobility of Indias export graph. A closer look at the trends shows that Indian ex-ports have become less volatile; exporters have widened their market base; and the trade basket is expanding. Services account for a large percentage of total ex-ports. In 2005-06, services ex-ports grew by 71% to $46 billion and by January 2006 had surpassed the previous years performance with 75% growth. Software services constitute a major portion of the total package. According to Nasscom, software services exports grew by over 33% in 2005-06 to $17.3 billion. Demand has been strong in traditional as well as new service sectorssupply management, engineering applications and a host of other such areas.

Adding to this buoyancy is the fact that Indian exports have become more resilient to exchange rate fluctuations. It is no longer a fear that a stronger rupee will lead to a drop in exportsa view that was quite common even in the late 90s. India no longer needs a weak rupee to make its products price competitive. However, one must not look at Indian exports in isolation. A recent report observed: It must be seen in the context of buoyant world economic growth in the region of over 4% a year, as well as world exports, which grew by 5%, 17% and 21%, respectively in the past three years. Current trends, however, suggest that India has kept apace with global standards. Revenues have risen across most productstextiles, farm produce, meat and allied products, iron and steel, machinery, software and electronic goodsranging between 5% to 15%, both in volume and value. These figures indicate that Indian exports are no longer dependent on the changing value of the rupee. Does this mean that Indian goods have found themselves a market that is price inelastic? Does the demand for Indian exports no longer depend on how cheaply these goods can be produced? While there may be no uniform reply across sectors, a certain consistency can be seen in some segments of Indian indus-try. There are numerous instances of key industries that have broken the price barrier to become an integral link in the global supply chain of large MNCs. For instance, the textile and automobile ancillaries industry. Auto ancillaries exports grew by 33% in the last three years. Textiles exports, after a brief choke up, grew by 25% in 2006-07. In both industries, growth has come significantly from supply contracts with some of the worlds largest automobile companies and retailers. These contracts promote long-term alliances and supply of large volumes. Both these factors are critical in creating an export basket that can withstand exchange rate and other such shocks. A similar story is unfolding in the manufacturing sector where exports have risen by 9% in the last two years. To a large extent, this surge can be attributed to the strengthening of the Indian machinery and mechanical appliances sectors, apart from an overall rise in demand for steel in the world. According to a recent report, the nature of manufacturing exports from India suggests that we could be becoming internationally competitive.

The other trend scaling up optimism over exports is the emerging pattern of trade. While the US and the UK remain dominant markets, Indian companies are making gains in newer geographies such as Asia, Africa and Latin America. China and Singapore are Indias third and fourth largest trading partners, respectively. For trade analysts, its a good sign. With India expanding its export base, it is spreading its risks and increasing the scope of its trade relationship. This is the perfect buffer against a trade disaster. With the export basket filling up with a wider range of products and services, and the markets expanding, exports are looking to establish their presence globally. The years ahead will be a test of patience, perseverance and skill as they do so.

India's export sector heading for a slowdown:

Research has said that India is facing a threat of dwindling exports as leading world economies are heading towards a slowdown and the country's trade deficit for the current fiscal is expected to be around USD 121 billion. Exporters of the country are under increasing pressure as the US, which is the single-largest export destination for Indian goods and accounted for Indian exports in 2007-08, is heading for a possible slowdown. Considering the magnitude of trade transactions and the current economic environment in the US, it has become even more imperative for Indian businesses, especially exporters, to exercise abundant caution in cross-border transactions. "As India is an export-led country, slowdown in the global economies is likely to dent the growth prospects for India. For the current financial year we are projecting 7-8 per cent growth; however, the coming year looks challenging,". "Exporters should adopt more caution. They should go for credit checking of their buyers, monitoring of their buyers and insuring their exports among others,".

The situation is likely to normalise in the next two years, the report added. Meanwhile, financial services major Citigroup has said India's trade deficit is likely to widen by 39 percent to USD 111.6 bn during the current fiscal, while banking behemoth Goldman Sachs also said Indian exports are likely to slow further as external demand continues to dip.

India: The Growth Outlook

It appear that some slowdown in the pace of expansion of the US economy is likely and this may lead to slower growth in developing economies as a result of lower rate of export expansion. This is however likely to be offset by continued growth in domestic markets and the relatively mild nature of the slowdown. The Indian economy is much less dependent on the external markets than the Chinese economy, for example. Thus, while some export demand compression is likely to put an additional burden on our exporters of goods and services, it is unlikely to be large enough to significantly depress growth. However, the flip side to this is that the pressure on the prices of oil, food and other raw materials is likely to continue, making inflation management in 2008/09 quite challenging. The impact of the appreciation of the Indian rupee vis--vis the US dollar and other major currencies has been a major source of concern. Industry apprehends a decline in Indias share in export markets as well as possible adverse consequences on the competitiveness of Indian manufacturing, or at least in some sections of it. It is interesting to note however that several items have bucked the trend, notably engineering goods and man-made textiles and

made-ups, which registered smart gains in US dollar terms that translate into sizeable gains even when measured in rupees, namely of 8% and 9% respectively. Gems & jewellery was up by 12% in rupee terms and refined petroleum products by 9%. In the majority of goods, especially those that formed an important component of the resurgence of Indian exports after 1991, there has however been erosion in export value when measured in Indian rupees. Thus, apparel was down by 13%, cotton yarn, fabric & made-ups by 12%, handmade carpets by 18%, and handicrafts by 50%. The rupee export value of leather products fell by 5% and chemicals by 2%. In these businesses, therefore, there was a contraction of export business and to the extent the domestic market could not accommodate diversion of output, a contraction of business in absolute terms as well.

Future of India's Exports: Need for Evolving a National Export Strategy: Considering both the strengths and weaknesses of Indias recent export performance, it is difficult to conclude with conviction that Indian exports have now taken off for a self-sustaining rate of growth in real terms at the rate experienced in 2007. There is indeed no room for complacency on the export front. The recent performance however does provide hopes that with concerted efforts at all levels, through a well formulated and implemented national export policy, the export sector can be made to yield the maximum potential contribution within limits which it can make to the national economy in the coming years.

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