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Why India tries, and others cry
Will others learn from India’s logic of not ignoring newer markets?
Almost all economies across the globe are facing the negative tide caused by the recent financial crisis that first struck US, and in a rather harsh fashion. And just as unbelievable as this one sounds, all of them could have easily avoided such an ill aftermath. India on the other end is only facing some mild side effects of the mayhem that found its epicentre in US. So where is it that they all went wrong, unlike India? The answer is simple – greed!!! Surprised? Well, what better than a $13.7 trillion economy to have strong trade ties with? And for every other country, that meant partnering with the mighty United States of America and get blind to every other economy!
India’s export catalogue is highly diversified – dominated by products like handicrafts, textiles and leather, which undoubtedly suffered due their falling demand falling in global markets; however, the overseas sales of engineering goods, metals and petroleum products rose during the same period. India’s clientele is also geographically diversified. It strategically eyed China and other developing countries in West Asia as its prospective consumer markets. As a result, when almost all the countries were suffering, India more than compensated any possible loss by dealing with emerging economies and mature economies alike. Today, China is India’s largest trade partner; trade value between the two nations touched a whopping $37.9 billion in 2007.
For now, the chance of India achieving the $200-billion export target set for 2008-09 looks slim, for that would call for India to grow at a stupendous 25% y-o-y (in these recessionary times?!?). Nevertheless, these are times to sustain and not really to grow empirically!
By:- Sray Agarwal
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