Question

What are the important features of a sound strategy of ‘export promotion’?
 

23 Aug 2017
Answer :
Word Count : 685

A sound strategy of export promotion is essential for a developing country like India to achieve sustained economic growth and development. Over the decades since gaining independence in 1947, India has made significant progress in developing its export sector, but there is always room for improvement. Several important features must be considered when formulating a robust export promotion strategy for India.

1. Diversification of Export Products:
   A sound export promotion strategy should prioritize diversification of export products. Over-reliance on a limited number of products can make the economy vulnerable to external shocks. India should encourage the export of a wide range of goods and services, spanning various industries such as information technology, agriculture, pharmaceuticals, textiles, and automotive, to ensure stability in its export portfolio.

2. Market Research and Targeting:
   Identifying and targeting the right export markets is crucial. A well-researched approach should focus on countries and regions where there is demand for Indian products and services. Market research helps in understanding consumer preferences, price sensitivities, and competition, allowing for tailored strategies to penetrate specific markets effectively.

3. Infrastructure Development:
   India's export promotion strategy should include investments in infrastructure. This includes improving transportation, logistics, and port facilities, which reduce the cost and time of trade. An efficient infrastructure system makes it easier for exporters to deliver products to international markets, thereby increasing competitiveness.

4. Trade Agreements and Bilateral

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