Performance of indian exports during the post to period: a critical evaluation

Abstract

The present paper is an attempt to study the performance o f exports o f India by examining the commodity com position and direction of Indian merchandise exports. An attempt has also been made to measure its impact on Gross Domestic Product and Balance of Trade during the post WTO regime. Based on the VECM results, the evidences support that there exist a significant long term bidirectional causation between the variables i.e. export causes economic growth and economic growth has influenced exports growth during the post WTO period. The study found that there is an increase in Indian merchandise exports during the post WTO  Period from 1995-96 to2009-10 but it could not reduce the trade deficit. The study further found that both exports and imports have  in creased as a percentage o f GDP during the period understudy. However, imports have increased a t much higher rate as com pared to  exports as a result o f which addition al revenue has not been generated to improve the standard o f living o f the society in India. On the  basis o f analysis, we recommend that there is a need to review the foreign trade policy followed during the post reforms IWTO Regime.  The study further recommends that the policy makers should think on an alternative model o f development based on the vast  domestic market.