Road blocks in India’s Export Development

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Even in the age of Make in India Indian exporters are facing considerable challenges.

Among the issues related to Indian export, with it granting more importance to inbound oriented import over promotion of export trade.

Apart from this, the major issues faced by Indian Exports are supply issues, unpredictability, faceless existence, excessive cost, undependability, infrastructural tailbacks, Inferior quality image, insufficiency of the trade information system, procedural difficulties a lengthy as well as a difficult process.

1.        Supply issues

One of the major issues is many of the export business is the result of residual approach rather than the reactive effort of producing to export. It’s a weighty limitation of the Indian export sector in its insufficiency to provide a regular and smooth supply of satisfying quantities in the respect of many products.  The likelihood to export what we produce instead of producing to export still specifies the export conducts.

2.        Unpredictability

One of the flaws of our trade policy authority has been the uncertainty of upcoming policies, incentive schemes, and many others. The import policy has a five-year duration to get some solidity, however, still, a huge number of amendments are stroked every year. There have reports of loss of billions of Rupees worth exports just because of interdepartmental coordination.

3.        Faceless existence

India’s export products are sold in the international markets with the same condition but with foreign brand names. Many items like leather products, seafood, and spices. Many of those products may go with advance repacking or processing have a faceless existence in the International markets. It clutches true that when a product has an international brand name has a higher price than the same product with an Indian name.

4.        Excessive cost

While keeping in mind the technological aspects and little productivity present to high costs of production. It is rated that interest rate lone creates around 5% of the rate of production in India. While the bank charges here effort out around 3% as compared to 1% with countries like Japan and Korea. Same with the port charges in India are 3-4 times more than Hong Kong and Singapore. The export sectors of textiles and jute have suffered a lot just because of low modernization and many competing countries have made huge progress in this area.

5.        Undependability

Apart from quality, Exporters of our country are known as undependable on many other cases like going back on a contract and deny fulfilling it on its agreed terms, unable to give quick aftersales services. While competing countries like South Korea, Japan, and Taiwan are well known for their service and quality.

6.        Infrastructural tailbacks

In our country, power breakdowns and shortfall disrupt production timetable, unmannered and undependable transport increases costs and effects the timely shipments and lack of coordination facility obstruct the growth of exports.

7.        Inferior quality image

Well “Made in India” does not have a good reputation in the international market as it is considered as a sign of inferior quality. The products which are manufactured in Japan, Korea and now even China are regularly stated as examples of trustworthy quality. For this incautiousness, go without commitment on part of our exporters and absence of a good exporter’s culture in India are to be held responsible.

8.        Insufficiency of trade information system

In India as of poor facilities of communication, when compared with developed countries, it is impossible to rely on the internet for getting the latest trade information. On the other hand, developed countries mention that they won’t choose to trade with those exporters who do not provide mandatory formalities through Electronic Data Interchange.

9.        Procedural difficulties

While considering the export documentation and formalities, it has been noticed that most live procedural and documentation formalities advised by various authorities have been developed to enhance their own requirements without much thinking about its results on entire export activities.

10.      Lengthy as well as difficult process

It’s an inarguable truth that the trade in the international world needs more time and efforts. We all know that the export procedure of India is not only lengthier but difficult too when compared with other countries of the sphere. Different documents are needed for trading which results in the process becoming more time as well as money consuming.

Well, these were some big issues that are acting as obstacles in India’s export growth. However, these are not the only ones. Other than this there are issues like the language barrier, limited information, stiff competiton among companies and corruption at frontiers which can cease the buyers making an export business with India.


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