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Shifting Paradigms in India’s Foreign Trade: A Structural Analysis of Commodity Composition and Market Diversification

Author(s) Dr. Abdul Rahman
Country India
Abstract The foreign trade of India has witnessed an important structural shift since the advent of liberalization, and the years between 2000 and 2018 mark an important period in the same. In this regard, the paper highlights India's shifting pattern of export and import with emphasis on its shift from being dependent on the export of primary goods to engineering goods, chemicals, petroleum products, and IT services. India's efforts to diversify its export destinations from traditional destinations such as USA and EU to East Asia, Africa, and Latin America have also been explored. This study shows how diversification of both commodity composition as well as destination has become one of the shields for India to protect itself from international volatility. Although diversification has allowed India to insulate itself from external fluctuations, it continues to face certain challenges like dependency on import of crude oil and electronics, inability to compete in manufacturing sector, trade deficits, and inadequate infrastructure. Through an assessment of trade theory, structural approach, and policies, the essay demonstrates that the foreign trade strategy of India underwent a transformation from reliance on traditional industries and markets to a more flexible and diversified one. Recommendations for policies that will help improve the sophistication of exports and reduce structural weaknesses in the country’s trading system have been made.
Keywords India, foreign trade, diversification, exports, imports, structural change, commodity composition, market diversification, trade policy
Published In Volume 10, Issue 4, April 2019
Published On 2019-04-09
Cite This Shifting Paradigms in India’s Foreign Trade: A Structural Analysis of Commodity Composition and Market Diversification - Dr. Abdul Rahman - IJTAS Volume 10, Issue 4, April 2019. DOI 10.71097/IJTAS.v10.i4.1272
DOI https://doi.org/10.71097/IJTAS.v10.i4.1272
Short DOI https://doi.org/hbxcvr
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