India’s growth rate can be improved by not only exporting software services but also a major exporter of manufactured goods. Explain (200 Words)
Refer - Business Standard
Enrich the answer from other sources, if the question demands.
IAS Parliament 2 years
KEY POINTS
· In FY21-22, Indian merchandise exports jumped 43.18 per cent year-on-year, going up from $291.81 billion to $417.81 billion.
· Merchandise exports have played only a supporting role. Service exports largely IT services have been a redeeming factor in India’s export story.
· India’s share in global merchandise trade has firmly remained below 2 per cent which is abysmal considering the size of our economy.
· Foreign manufacturers in India have largely focused on the domestic market, instead of treating it as a low-cost, high-quality manufacturing base for exports.
· The changes in wheat, petroleum products and steel export policies or tariffs are recent examples, though all of them have been justified by the government as being absolutely necessary given the current domestic requirements of the economy.
· In sectors ranging from pharmaceuticals and drugs to automobiles to food and cosmetics Indian manufacturers have a lower quality bar to meet than their global counterparts.
· An Indian automaker or a generics drug company exports higher quality goods to other countries than it sells in the Indian market
· The government should focus on removing hurdles that increase the cost of manufacturing or just doing business in India. At the same time, it should set higher quality standards and monitor them stringently.
K. V. A 2 years
Kindly review
IAS Parliament 2 years
Good attempt. Keep Writing.
