The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Vaibhav Singhal, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur
On 11th of April 2015, the Economic Times published: “India’s exports may again miss the target in 2014-15 and be in the range of $ 308-310 billion as against the target of $ 340 billion, a senior Commerce Ministry official has said.” Last year India had target of $325 billion as compared to the total merchandise shipment stood at $312.5 billion. The reasons for decline in exports include slowdown in manufacturing, softening of metal and commodity prices and declining competitiveness of domestic goods in international markets, an industry expert said.
On 12th of April 2015, the Times of India published on similar lines: “During April-February 2014-15, it grew by a merger 0.88 per cent at $286.58 billion as against $284.07 billion over the same period previous year.”
I believe India government should take some serious steps as India’s exports are hovering near about 300 billion dollars. There are some initiatives by Modi’s government to promote manufacturing sector by ‘Make in India’ campaign. Recently, it had announced incentives in the new five-year Foreign Trade Policy. With an aim to nearly double the country’s goods and services exports to $ 900 billion by 2019-2020, the Commerce Ministry has incorporated various incentive schemes such as Merchandise Exports from India Scheme (MEIS) and Services. India has to reduce the barriers in terms of Foreign direct investments (FDI) which can provide funds and expertise for export oriented things. We also need to provide suitable training to the population of India if we need to be manufacturing hub of world like China.