Explain the various factors which affect the growth rate of exports in India and discuss about key measures taken by the Government for promotion of exports. (200 Words)
Refer - Business Standard
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
Factors affecting growth rate of exports
· India’s exports have faced a very challenging period in recent years, on account of developments arising from the global financial crisis of 2008-09, which accentuated after 2013-14, when the world economy experienced a major trade slowdown.
· The new data from the Union Ministry of Commerce has revealed that India’s exports shrank by over 6 per cent is a reminder of the long-term slowdown that has plagued exporting sectors.
· The decline in exports of engineering goods, which fuelled a minor recovery in the last financial year, is particularly troubling.
· Even the global slowdown in trade engendered by this tension nevertheless offers a chance for India, with a measly 2 per cent of world trade, to expand into new markets.
· Turnaround time of ships in India is huge hampering the time of delivery of goods.
· Lack of dedicated freight corridors country constraints the transportation of raw materials from one place to another.
Key measures for promotion of exports
· A new Foreign Trade Policy (FTP) 2015-20 was launched on 1st April 2015. Merchandise Exports from India Scheme (MEIS) for improving export of goods and ‘Services Exports from India Scheme (SEIS)’ for increasing exports of services. Duty credit scrips issued under these schemes were made fully transferable.
· A new Logistics Division was created in the Department of Commerce to coordinate integrated development of the logistics sector. India’s ranking World Bank’s Logistics Performance Index moved up from 54 in 2014 to 44 in 2018.
· A new scheme called “Trade Infrastructure for Export Scheme (TIES)” was launched with effect from 1st April 2017 to address the export infrastructure gaps in the country.
· A comprehensive “Agriculture Export Policy” was launched on 6th December, 2018 with an aim to double farmers’ income by 2022 and provide an impetus to agricultural exports.
· A new scheme called “Transport and Marketing Assistance” (TMA) scheme has been launched for mitigating disadvantage of higher cost of transportation for export of specified agriculture products.
Anu 5 years
Kindly review. Thank you.
IAS Parliament 5 years
Good answer. Keep Writing.
Harisindhan 5 years
Kindly Review
IAS Parliament 5 years
Try to include about measures taken by government to boos exports. Keep Writing.
Kiran sharma 5 years
Please review
IAS Parliament 5 years
Good attempt. Try to include about Foreign Trade policy 2015-2020. Keep Writing.
Shivangi 5 years
Please review. Thank you.
IAS Parliament 5 years
Good answer. Keep Writing.
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