The commerce ministry should go beyond the immediate and obvious reasons for explaining downturns in exports, and pay attention to trends which have been in the making for several years. The slump in shrimp exports is because India ignored US warnings that that country would not buy shrimps which had been farmed in a manner that affects a certain kind of turtle. India ignored the issue, and finds now that it can't export shrimps to the US. Those who seek global markets must reckon with the growing importance attached to environment protection on the one hand, and business practice on the other. Child labour in carpet manufacture and the use of certain harmful dyes in leather products are excellent examples of this. If Indian exporters want to preserve their market share, they must adopt the standards prescribed in the target markets.
Critics of western attitudes in such matters say that this amounts to imposing a foreign welfare function on Indians, and could amount to the raising of non-tariff barriers. Perhaps so. Also, it is argued, if western standards are adopted, overall costs will go up for Indian firms without a perceptible increase in welfare for Indians