Structural Changes in Direction of India’s Exports under New Trade Policy

Abstract

The main objective of this paper is to analyse the structural changes in direction of India’s exports under the New Trade Policy since 1991. The period of study is 1987-88 to 2014-15. The paper uses the dominance pattern, ranking technique, mobility and turnover, concentration ratio and growth rate technique as research methodology for analysis. The results show that USA, UAE, Hong Kong, UK and Germany accounted for more than 62 percent of exports from India at the world level. UAE and Hong Kong are Asian Countries in top five and accounted for around 24 percent of India’s export. World concentration ratio of exports from India is negative, declining and low. In case of developing countries, UAE has emerged as the most important trading partner followed by Hong Kong, Singapore, Saudi Arabia and Bangladesh and accounted for more than 64 percent of India’s export to developing countries. Bangladesh is the only SAARC country in top five developing countries, while China and Russia of BRICS countries are in top list of India’s exports. India’s direction of foreign trade has exhibited a structural shift during the last two decades. Trade volume and trade share of emerging and developing economies has increased while the share of conventional trading partners (developed countries) has showed a declining trend.