India is currently facing a massive exports slowdown, one of its worst in recent years. Exports slumped for the 13th consecutive month in December 2015 by 15 percent and major exported goods from India have shown negative growth. Half the story relates to external forces: as global growth slows down, India’s export markets contract, too. The other half, however, is a story of supply: for many reasons-lack of infrastructure, amongst them-India has been unable to expand trade into newer products and service areas to counter the adverse effect of falling exports. This paper examines the reasons for the exports slowdown and discusses the challenges ahead for India’s export growth. It prescribes specific focus areas for intervention that will help rectify the country’s exports slump.
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