Asia, Africa key markets to diversify Indian exports
Asian and African markets emerged as India’s new exports destinations in the last decade, while shipments to the US and Europe fell by a significant margin. India’s share of exports to the developing Asian countries increased from 48% in 2005-06 to 50% in 2015-16, while its exports share in African region grew from 7% to 11% during the same period. “Measuring the shift of India’s share from developed economies to developing economies by using a standard measure of export market diversification i.e. Regional Hirshman Index (RHI), India’s exports has reported a gradual shift in its export destinations from traditional to non-traditional markets,” PHD Chamber of Commerce and Industry (PHDCCI) said in a statement. However, exports share to advanced economies such as the US and Europe fell from 44% in 2005-06 to 37% in 2015-16. India’s exports to different regions are still centred on the top ten commodities that constitute more than 60% of the country’s total shipment. “To become internationally competitive, commodity composition of the country to (should) be focused for diversification with the inclusion of more and more commodities in export baskets,” said Alok B Shriram, President, PHDCCI. Shriram suggested the government to encourage exporters to diversify their products through a better knowledge of demand in emerging and developing economies. “More and more information about the world demand dynamics would help exporters to enhance their export baskets and manufacturers to enhance their production possibility frontiers,” said Shriram. He also emphasised on the need to remove domestic bottlenecks, especially in infrastructure, by expanding ports capacity, improving quality of roads and bettering facilities in the railways.
November 21, 2015 | 3:46pm IST