Analysis of some important issues in India's merchandise exports

The world economy has been receiving shocks at regular intervals since the 2008 crisis. While, there was recovery in global economy after the 2008 crisis, with developing countries leading the recovery and developed countries like US and Euro Area countries facing unemployment and recessionary trends, a reversal of roles seems to have taken place recently.

India„s exports have increased over the last two decades, from US $17.9 billion in 1991–92 to US $83.5 billion in 2004–05 and further to US $312.6 billion in 2013–14. Similarly, the share of India„s merchandise exports in the world exports has increased from 0.5 per cent in 1991 to 0.8 per cent in 2004 and 1.7 per cent in 2013. Commodity wise analysis shows that the share of USA has increased substantially in the last five years in India„s export of the three categories: primary products, manufactures and petroleum crude & products.

Petroleum crude and products, machinery, gold and silver and electronics goods are the major items of import of India. The share of POL imports increased from 26.8 per cent to 36.7 per cent in 2013–14 and this growing share is due to moderate quantity growth and rising, though fluctuating, international oil price over the last 10 years.

As per the World Bank and International Finance Corporation (IFC) publication “Doing Business 2014”, India ranks 134 in the ease of doing business with Singapore at first place and China at 96.