India Eyes Export for Big-Time Growth

We all knew that India was in the midst of an export boom, but given the country's rising local demands as infrastructure growth competes for resources against the manufacturing economy's insatiable appetite, I'm still surprised India is planning on such a large export percentage increase in a short period of time. According to the above-linked article in the Times of India the government recently "announced an array of incentives in its annual review of the Foreign Trade Policy to achieve an export target of $200 billion in 2008-09 as against $155 billion in 2007-08. However, keeping in the mind the worrying factor of rising inflation, it has removed incentives on exports of cement and steel to boost supply of these commodities in the domestic market ... exports should touch $1.25 trillion by 2020" given an average growth rate of 25% "which is difficult but not impossible" to achieve. Despite India's infrastructure challenges -- if you Google "India Infrastructure" you get nearly 1,000,000 hits which shows you the size of the challenge in an online, metaphorical way -- this is one country I'd bet on for numerous regions in the manufacturing arena including: a commitment to both innovation and intellectual property protection, rigorous and established engineering and science programs that can go head-to-head -- at least on the undergraduate level -- with any other universities in the world. Compared to China in all three of these regards, India is light years ahead. Now only if they could move the cows off the roads (and pave and expand the highways while they're at it) ...

- Jason Busch

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