INDIAN EXPORTS: A RIDDLE OF REGULATIONS (KERALA, INDIA, SIAM, LAND)

This study evaluates the export performance of India. The methodology adopted involves analysis of export statistics during 1970-71 through 1981-82, an indepth study of the Korean export development program and development of a theoretical construct for an export management system. Also, a major industrial sector of India--marine products group--was studied in detail with special emphasis on the government organization designed to promote exports of marine products. Historical analysis indicates the impact of government policies on export promotion. While world trade expanded, the share of India\u27s world exports decreased. When government emphasis shifted from traditional to non-traditional products, the success achieved in one industrial sector came at the expense of others. In general, the growth in exports was negligible compared to those of the Asian countries like South Korea, Taiwan and Hong Kong. While India and Korea had several things in common, they chose two distinctive economic strategies with different results on export development. Korea\u27s export development success was phenomenal compared to India\u27s. An important aspect of the study was the development of a model for an export management system for a developing economy like India. Statistical projections of exports of three important Indian product groups were made. Results of a questionnaire survey revealed that majority of exporters recognized poor marketing as a major problem and all respondents approved of creating an Indian trade center overseas. Price was regarded as another trade obstacle for which one solution suggested was the creation of internationally cost effective industries. Seventy eight percent of the respondents felt that exports would improve if subsidies were replaced by some form of long-term development assistance. The home industries have not become capable of competing in the international markets through the present system of protection and subsidies. Respondents were overwhelmingly in favor of exposing industries to competition and taking measures to develop internationally cost effective industries. Exporters were continually faced with the problem of government regulations. A major conclusion is that the Indian government has not allocated sufficient resources to improve exports. Although crucial for the economy, export development has not been assigned adequate priority in resource allocation. (Abstract shortened with permission of author.