Revisiting Growth-Export Nexus of Indian Economy

This paper investigates the growth-export relationship of the Indian economy during the time period April-1998 to November-2012. Empirically acclaimed cointegration methods like Engle-Granger and Johansen tests are employed for this analysis. Findings from both the tests suggest that there exists a long-run stable equilibrium relationship between these two variables. Apart from this, the Granger causality test refutes the export-led growth hypothesis for the Indian economy during the time period under consideration since there is no unidirectional causation which runs from export to growth.