An Analytical Study on The Export Led Growth Strategy and India's Development

Abstract

Globalization leads to economic transformation throughout the world which necessitates structural reforms. Developing country like India needs huge capital, infrastructure, improved technology etc. to compete with other countries and emerge as a developed one. Over the past decade, India is facing chronic financial crisis and to overcome this problem, it needs plenty of foreign exchange which can be earned through exports. Export growth is one of the key determinants of economic growth. By recognizing the significance of exports, the Government of India adopted it as an economic strategy. Industries producing export goods may receive governmental subsidies and better access to the local markets. This strategy enables to gain enough hard currency to import goods more cheaply from other countries. It implies opening domestic markets to foreign competition in exchange for market access in other countries. Now-a-days India has been one of the world's fastest growing economies and its success depends mainly on trade reforms, especially of Export-Led Growth strategy in view of its large internal market. On this backdrop, the present study is undertaken to analyze the strategy of Export-led Growth in the development of the economy.