Changing terms of trade

India must aim to boost export share

The beginning of a fresh term of the government provides an opportunity to revisit policy issues and make interventions to achieve higher, sustainable growth in the long run. One such area is trade. It is well established that international trade significantly drives aggregate demand, and no country can achieve rapid growth without expanding exports. Higher exports will reduce India’s dependence on foreign savings while creating much-needed jobs for its growing workforce. This will help stimulate domestic demand and generate a multiplier effect. For comparison, India is on course to become the third-largest economy in the coming years. However, its share