Essays

Since the advent of internationalism, nations of the World have become members of the world community.   Countries have become interdependent. It is not possible for any single state to produce all that it needs, as natural resources in variety and reserves, are limited to certain areas only.

So export is very necessary in the modern civilized World prior to Independence, the pattern of trade of India was typically colonial. India used to supply only Raw materials to industrialized nations—as a result there was no industrial development in India.

 In the beginning, after Independence, we imported Heavy machinery that we could not produce ourselves. At The same time the aim of the government was to become Salf-sufficient in producing as many goods as it was possible Markets had to be located for our finished products India's exports before Independence proved harmful to the economy of India. We were exporting only raw material and were buying finished goods of the same raw material at higher prices. British rulers had restricted our exports to a few countries and the balance of trade was not favorable to slave India.               

After the Second World War, India started export of some goods to other countries also and developed the export potential to some extent.

 The  export policy of the Indian Government after  Independence  was guided by two considerations, that is  To maximize the earnings and to ensure that exports are  Not affected  if the home demand for a commodity is not  Adequately  met. It was devaluation and Korean war that provided stimulus to our exports. Soon export promotion became a necessity. It was realized that export promotion should be preceded by industrialization. Five-Year plans proved handy.

Quite some decades ago an import and export policy committee known as Mudalier Committee was set up to examine the export policy. It pointed out the factors that. were hindering exports were both external as well an internal. It informed that tea, cotton textiles and julu products were the only staple items for export.

Moreover there is more competition in the international market and so even our export items need quality control and reasonable prices. The Committee recommended the increasing of allocation of exportable items, income tax relief to export industries and the promotion of export-H through entitlements,

The Government took many steps according to that recommendation of the Committee and an Export Promotion Advisory Council comprising representation of business and industry was set up by the Central Government. Even devaluation of the rupee was tried in this context.

Our exports rued to exceed our imports. It is with the help of foreign exchange that we can undertake morn schemes for the development of Indian economy, increasing exports need a complete reorientation of our policy towards the different sectors, private and public, as well as toward the consumption at home. We must but quality conscious of the exportable items—if not our reputation will be at stake.

To a great extent, the State Trading Corporation of India is taking care of this.

Do You Know?

Textiles, gems and jewelleries and agricultural and allied products constitute to more than half of the total value of Indian exports