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.

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.

This information was given by the Union Minister for Commerce and Industry, Shri Anand Sharma in a written reply in the Lok Sabha today.

DS/RK

(Release ID :94844)

Trade balance monitoring drives export promotion strategy to retain markets, move up value chains and diversify exports. The Government regards the trade balance-the difference between exports and imports-as a central macroeconomic indicator tied to current account stability and economic growth, and therefore actively monitors trade and current account metrics. Policy focuses on export promotion for high value manufacturing goods by retaining presence in traditional markets, upgrading value chains in developed markets, and diversifying into new markets and products.