EXPORTING TO AFRICA by Deepak Joshi (the first e reader .TXT) 📖

a very complex market that has many barriers to trade. There are many reasons behind this complexity like paying high taxes, construction permits, cross-border trading, enforced contracts etc.

Problem #3  Import Tariffs

An increased import tariff dissuades many exporters to make trade in India. Increased import tariff leads to an appreciation in the real exchange rate of the country. Additionally, high import tariff encourages traders to lean towards illegal means of import/export. This leads to smuggling which today has become a full-fledged industry. Traders think Indian market to be corrupt and hesitate from making any trade.

Problem #4    Lack Of Proper Infrastructure

Another factor that leads to low export in India is the lack of proper infrastructure facilities. There is inadequate space, both at the seaports and airports for keeping and storing various goods. In addition to that, many goods require special facilities that India is, unfortunately, still trying hard to provide. India’s export trade would see considerable improvement if the infrastructure facilities are improved here.

Problem #5      Low Export Publicity Or Promotion

India has a pretty good inclination towards adopting means to substituting import and regards export promotion or publicity at a lower scale. Promoting export trade in India is one of the chief issues that Indian government should work on in order to have a considerable growth in terms of export trade. If people don’t get to know about the goods and services that the country has, then they would never be attracted to making trade relations. In fact, India should also implement many tax reforms and concessions to promote export business and set a step forward in Indian export growth.

Problem #6    Lengthy And Complex Process

It is an undeniable truth that trading in the international sphere calls for more time and energy. However, it is known that the export procedure of India is not only lengthier but complex too when compared to other countries. Various documents are required for export trade which makes the process more time as well as money consuming.

These were the major problems that are creating a hindrance in the India’s export business. In addition to that, there are many other factors like language difference, lack of information, jealousy among companies and corruption at borders that can be stopping people making an export trade with India.

 

 

INDIA'S EXPORTS - NEW OPPORTUNITIES & CHALLANGES

 India’s exports: New opportunities and newer challenges

The global economy faces challenging times ahead. Even before Covid-19 brought the world to an unexpected standstill, global economic prospects seemed in a precarious state as debt-fuelled growth of the past decade was reaching its limits in developed and developing countries alike. The corona virus pandemic has accelerated and accentuated the inevitable crisis. In light of these trends, the need for export-led growth becomes more pertinent than ever. Even for a country as large as India that possesses an expansive domestic market, high growth can only be sustained with an export-oriented policy focus.

 

The government has made huge strides in facilitating an enabling business ecosystem through liberalisation of Foreign Direct Investment, ratifying WTO's Trade Facilitation Agreement, and other such reforms since 2014, which has improved India’s integration into the global economy. To further enhance India’s export preparedness to meet the needs of the post-Covid global economy, the Export Preparedness Index (EPI) 2020 examines the export ecosystem of Indian states and union territories.

 

As India begins on its journey of self-reliance and export expansion in these tumultuous times, the states need to take on the reins and adapt their efforts with the emerging trends in globalisation. The EPI 2020 can serve as a guide to the sub-national governments in creating an enabling framework and removing the bottlenecks that afflict their respective export sectors.

 

Future Of Indian Exports

 

Indian Exports: A History

 

The history of Indian exports is very old. During ancient times India exported spices to the other parts of the world. India was also famous for its textiles which were a chief item for export in the 16th century. Textiles and cotton were exported to the Arab countries from Gujarat. During the Mughal era India exported various precious stones such as ivory, pearls, tortoise stones etc. But during the British era, Indian exports declined as the East India Company took control of foreign trade.

 

Leading Export Items of India

 

In the past ten years, Indian exports have grown at a rate of nearly 22%. Some commodities have enjoyed faster export growth than others. Some of India's main export items are cotton, textiles, jute goods, tea, coffee, cocoa products, rice, wheat, pickles, mango pulp, juices, jams, preserved vegetables etc. India exports its goods to some of the leading countries of the world such as UK, Belgium, USA, China, Russia etc.

 

Export Trends

 

If the Indian economy grows at the same pace, India would most definitely export goods worth US $500 billion by 2013 and may supersede the exports of other large developing countries like Brazil.

 

 

Problems of the Indian Export Sector

There are few problems which need to be solved before India makes a mark for itself in the export sector. The Indian goods have to be of superior quality. The packaging and branding should be such that countries are interested to export from India. At the same time India must look for potential market to sell their goods. The government should frame policies which gives boost to the exports.

 

The Opportunity

 

It is very clear that Indian exports have still not achieved their true potential and there exists immense opportunities for expanding the basket of India’s exports. With a strategic attention on the new markets that are evolving due to free trade, India is witnessing a boom in both manufacturing and services.

After six months of continuous fall, India's goods exports posted a 5.27 per cent growth in September 2020 (year-on-year) to $27.4 billion, with crucial sectors such as readymade garments, engineering goods, petroleum products, pharmaceuticals and carpets on an upswing

 

 India’s exports: New opportunities and newer challenges

 

The corona virus pandemic has accelerated and accentuated the inevitable crisis. In light of these trends, the need for export-led growth becomes more pertinent than ever. Even for a country as large as India that possesses an expansive domestic market, high growth can only be sustained with an export-oriented policy focus

As India begins on its journey of self-reliance and export expansion in these tumultuous times, the states need to take on the reins and adapt their efforts with the emerging trends in globalization.

India has the potential to increase its goods and services exports to Australia to $15 billion by 2025 and $35 billion by 2035, according to Ambassador Anil Wadhwa, a former senior Indian Foreign Service (IFS) official.

Bilateral trade in goods and services between Australia and India stood at $23.3 billion in 2018, of which goods accounted for $17.8 billion while services contributed about $5.5 billion.

India is having tremendous opportunity in export. Which can be grabbed by individuals and small businesses.

ATMANIRBHAR BHARAT ..

 

 

The government’s focus on Atmanirbhar Bharat, accompanied by its introduction of production-linked incentives (PLIs) for manufacturing, has attracted criticism as well as praise. Critics have characterized it as an inward-looking import substitution policy that is likely to produce negative outcomes, while supporters have touted it as a game-changer which will finally allow Indian manufacturing to acquire its rightful place. A brief dive into the history of developing nations that have emerged from poverty would suggest that it is likely to be neither. In all probability, it will end up as just another middling policy of the sort that has defined India’s economic decision-making process for decades.

Historically, most developed countries have followed a mercantilist model to enrich themselves at the expense of others. Britain ruthlessly exported finished goods to its colonies while keeping its domestic industry protected behind high tariffs throughout the 1700s and mid 1800s, till it achieved significant industrialization. The US had also imposed high tariffs on imports, reaching a peak of over 40% in 1870. In fact, US import barriers did not come down till the end of World War I, which generated huge surpluses for the US economy as it became the primary supplier of war material to the Franco-British alliance. Tariffs were again raised in the 1930s, as the US economy slipped into depression. Both the UK and US followed a policy of protecting domestic industry, building industrial capacity and absorbing technology, before opening their markets to the rest of the world.

In sum, while self-sufficiency may be a commendable target, India’s development goals can’t be met without facing the world armed with a robust export strategy.

 

PROSPECTS FOR EXPORT - MADE IN INDIA

Exports are a vital component of a dynamically growing economy like India. Supported by market resilience and dynamism, India’s exports have undergone significant changes in the recent years in terms of volume, structure and direction. The Government of India has been undertaking several measures to boost the exports growth trajectory. However, the growth of exports has been at around 9% to 10% during the last few years. Going ahead, improved global demand along with recent reforms in policies and procedures at domestic front have created a great opportunity to strengthen the exports growth trajectory.

 

In a nutshell, if India continues to move in the direction of the past several years, a new virtuous circle of increased exports and improved economic performance should ensue. A broad strategic policy to pursue comparative advantage in a more thorough going way will have very major advantages for India by promoting exports in the most efficient possible way.

 

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