India's export problem

Mere tinkering will not help

The new data from the Union Ministry of Commerce has revealed that India’s exports shrank by over 6 per cent in August, a reminder of the long-term slowdown that has plagued exporting sectors. While there is no immediate impact of this structural problem on the stability of India’s external balance, since imports have also been dropping, thanks to a demand crunch domestically, there is nevertheless a problem of exports that must be addressed. The decline in exports of engineering goods, which fuelled a minor recovery in the last financial year, is particularly troubling.

Union Commerce Minister Piyush Goyal was right