Asia-Pacific Trade and Investment Review
India’s Exports: Is the Bull Run Over?
Abstract: This paper has two broad objectives: first, to identify a set of factors that appears to be responsible for an increase in India’s export growth during recent years; and second, to examine the possible impediments to high export growth in a sustained manner. I found that the increase in Indian exports during the years following 2000 is predominantly services driven and is attributed to an increase in factor productivity, growth in world trade, an increase in intra-industry trade and external sector reforms.
Introduction: India’s trade figures have improved. This is especially true for the period following reforms. Although there were few reforms in the 1980s, comprehensive reforms in the true sense of the word started in earnest in 1991. t India’s progress in terms of exporting goods and services has been remarkable since the mid-1990s, especially compared with India’s position in the early 1990s. With the outbreak of hostilities in the Persian Gulf in 1990 and the consequent spiralling of oil prices, there was tremendous pressure on India’s foreign exchange reserves, aggravating an already weak balance of payments situation..
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