Book Description

This study presents a detailed analysis of India's merchandise exports growth, structure, diversification- both commodity wise and geographical-and instability of exports income. Ever since independence, exports have occupied a significant place in India's economic policies. For a long period India followed the policies of import substitution and self-reliance though export promotion was also on its agenda of development. There was a paradigm shift in India's policies towards liberalization and globalization in 1991. During post 1991 era, the liberal policies created an environment conducive for rapid exports growth. During last two and a half decades India has transformed itself from a restrictive closed economy to an important trading country in the world market. The economic reforms have significantly impacted the performance of Indian economy in terms of high growth rates of imports, exports and GDP. The long term vision of Indian economy is to become a major player in the world trade and to assume leadership role in international trade organizations. However instability of exports income is a major issue confronting India. Instability of exports income was always a challenge and in the globalized economy vulnerability is still higher as has been shown by world financial crisis of 2008 which resulted in economic slowdown and trade contraction in India. Despite many challenges on domestic and international front India is expected to grow at a rate higher than 7%, which will be highest among the major economies of world. This study makes an in-depth analysis of instability of exports earnings, commodity wise as well as country wise during the period 1987-88 to 2012-13 and arrives at significant policy implications. The study also analyses the causes of exports earnings instability and the relation between exports instability and economic growth. During the course of the study, we visited a number of institutions and Libraries like Ratan Tata Library, Delhi University; Jawaharlal Nehru University Library (JNU), New Delhi; Library of Panjab University, Chandigarh; library of Punjabi University, Patiala and Library of CRRID (Center for Research in Rural and Industrial Development), Chandigarh etc. We gratefully acknowledge the help rendered by the librarians of these institutions for extending us access to the research material available in these libraries. We are also thankful to all faculty members in Punjab School of Economics, Guru Nanak Dev University, Amritsar for their suggestions, and support and research facilities for the completion of this work. Our sincere thanks are to Librarians, Punjab School of Economics, Guru Nanak Dev University, for their help in making best use of the library. We would also like to thank non-teaching staff members of the department for their kind support and cooperation.