Why EXPORTS Is The Only Skill You Really Need

India’s economic structure today presents a distinctly different picture from what it was in 1991 when economic reforms started. 

In 1991 our foreign exchange reserves had depleted substantially. 

We then had just enough reserves to tide over the import requirements of three weeks. 

It was in this context that India gradually started dismantling its quantitative restrictions, partially liberalised its exchange rate and reduced the peak rate of customs duties. 

The average duty on all products stands reduced from over 70% in 1991-92 to 12% in 2008-09. 

However, at the same time the whole world was rushing towards globalisation and integration. 

Had India not joined the race, the economic scenario could have worsened. 

The only recourse left to India was to increase its exports to tide over the ever-increasing imports. 

We were aiming to gain a considerable proportion of international business and make our presence felt on the international front. 

The Government announced various export promotion measures and incentives. 

Laws were framed to streamline the process of export and import. These laws ensured that our commitment to expansion of India’s trade remained firm. 

The laws and facilitations announced by the Government were not only related to export and import of goods and services, but were also directed to upgradation of technology and integration of all the departments by using latest technologies available. 

As we can see, e-commerce plays a very significant role in today’s trade. 

The Export and Import Policy or the Exim Policy, 1992-97 was a significant landmark in India’s economic history. 

For the first time, conscious effort was made to dismantle various protectionist and regulatory policies and accelerate the country’s transition towards a globally oriented economy.

This Policy coincided with the 8th Five Year Plan and has yielded impressive growth in exports. While India’s total exports during 1991-92 were US$ 17.86 billion, they increased to US$ 155 billion in 2007-08, almost 2½ times of the figure four years ago. 

India’s share in the global trade has gone up and the share of exports as percentage of GDP has also increased substantially.

Keeping these factors in view, the Exim Policies announced thereafter have sought to consolidate the gains of the previous Policy. 

They aim to further carry forward the process of liberalization with the result that we have achieved nearly 1.5% share of world merchandise trade in 2007-08 totalling up to US$ 525 billion. 

In the current Foreign Trade Policy, two major objectives have been outlined:

1. To double our percentage share of global merchandise trade within the next five years; and
2. To act as an effective instrument of economic growth by giving a thrust to employment. 

Out of the above two, we have already achieved the first one and are on track to achieving the second objective i.e. we have already created 136 lakhs new jobs in the past four years. 

In the era of globalisation and WTO regime many Asian countries have achieved such remarkable export-led growth that South Korea and Taiwan are likely to be considered as developed countries by WTO. 

WTO is the largest body of world trade consisting of 153 member countries as on date and responsible for 96% of the world trade. 

It is necessary for any developing country to expand exports continuously because export growth ultimately results in creation of jobs, building up of infrastructure, economies of scale and added foreign exchange earnings. 

 Today’s world is economic in nature and increased exports give credibility to the standing of the country in overseas market. Exports, therefore, are of importance and are considered a national priority by the Government of India.