GOVERNMENT OF INDIA

MINISTRY OF COMMERCE AND INDUSTRY

LOK SABHA

UNSTARRED QUESTION NO: 4580

ANSWERED ON:22.04.2013

SHARE OF EXPORT SECTOR IN GDP

ANANT KUMAR HEGDE

(a)whether the Government has taken a decision to make export as the basis of economic development and if so, the details thereof and the reasons therefor;

(b)whether the share of export sector in Gross Domestic Product of the country is rising constantly during the last three years and the current year;

(c)if so, the details thereof along with the percentage of export from India as compared to the total trade in the international market, year-wise;

(d)whether the gap between the import and export has caused a negative impact on econo

mic condition of the country during the said period; and

(e)if so, the reaction of the Government thereto?

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:- 

ANSWER

MINISTER OF COMMERCE AND INDUSTRY (SHRI ANAND SHARMA)

 (a) to (c) Exports have always played an important role in the economic development of most countries. This is evident even in Indian case from the continuous upward movement of percentage share of merchandise exports in the overall GDP of India from 13.9 percent in 2009- 10 to 16.0 percent in 2010-11 and 17.7 percent in 2011-12. As per the WTO trade statistics India’s share in the total global merchandise exports has been measured at 1.48% during 2010, 1.66% during 2011and 1.60% in 2012.

(d) & (e) The difference between imports and exports is the measure of Trade Balance, which contributes to Current Account Balance stability of a country. Macro Economic growth and stability of a country has a very close correlation with Current Account Balance of that country. Hence, Government and policy makers keep a close watch on Trade Balance and Current Account Balance. An aggressive product promotion strategy for high value items that have a strong manufacturing base is the main focus of the overall growth strategy. The core of the market strategy is to retain presence and market share in traditional markets, move up the value chain in providing export products in the developed country markets; and open up new vistas, both in terms of markets and new products in these new markets.