Why India badly needs an export boost to reverse its economic slump

Almost all the talk at present is about import substitution and raising tariffs, but a fundamental reason for India's recent slowdown has been its failure to generate export momentum, writes T N Ninan

When domestic demand is slack, competitive economies look to export markets. Indeed, every country that has grown rapidly has been a successful exporter. One of the fundamental reasons for the slowdown in India in recent years has been its failure to generate export momentum, especially merchandise exports. So exports have fallen significantly in relation to gross domestic product (GDP). The economy cannot work its way out of the current slump without reversing these trends and achieving an export boost. Yet, almost all the talk is about import substitution (which is fine if done efficiently) and raising tariffs (which suggests it