The acceleration of merchandise and services exports could potentially raise the trajectory of the Indian economy if India could capitalize on our exports potential. Discuss (200 Words)
Refer - Indian Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· India’s exports surpassing the pre-pandemic level of $331 billion in FY 2018-19 and reaching $418 billion in FY 2021-22 is certainly an achievement.
· Total merchandise trade, including imports of $610 billion, amounts to $1.28 trillion for FY 2021-22. These milestones on the trade front are a sign of a rising India, which would certainly accelerate the growth and the increasing imports are a good sign given the high import intensity of India’s exports.
· Schemes like the gold card scheme and interest equalisation scheme by RBI and the market access initiative by the export promotion councils are also useful.
· If we go by India’s Trade Portal estimates, we find a huge difference in India’s exports potential and actual exports in many sectors, especially pharmaceuticals, gems and jewellery and chemicals.
· India’s best endowment for the next couple of decades is its working-age population and its strength is in labour-intensive manufacturing.
· However, we must avoid protectionism and inverted duty structures which may give temporary relief to domestic industries but will affect India’s overall competitiveness.
Manish 3 years
Please review for 15 marker
IAS Parliament 3 years
Kindly repost the answer.
