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Exports less dependent on world economy since 9-11: Economist
New Delhi, Aug 27: India`s exports have become less dependent on world economy for growth since the September 11 attacks, an eminent economist said.
New Delhi, Aug 27: India's exports have become less dependent on world economy for growth since the September 11 attacks, an eminent economist said.
Speaking at a seminar on trading horizons here, B B Bhattacharya, director of institute of economic growth said that recent experience has shown that domestic exports were being driven less and less by world economy since the terror attacks with the united states tightening restrictions.
He said that prior to the incidents us government had been less rigorous about the operations of foreign banks allowing exporters to retain earnings abroad.
Exports which had clocked growth rates of 20 per cent during last year are expected to perform well during the year after posting double digit figures during the first few months.
Bhattacharya said that India's comparative advantage lay with services sector particularly in software and outsourcing business as the country possessed a large pool of highly skilled English speaking workforce.
He, however, cautioned that to take advantage of the changes, domestic enterprise would have to organise itself into groups.
In the case of pharmaceuticals and bio-technology despite inherent advantages, growth was hampered due to restrictions imposed by WTO regime, he said adding that country could otherwise flood the world markets with competitive goods.
Bureau Report
He said that prior to the incidents us government had been less rigorous about the operations of foreign banks allowing exporters to retain earnings abroad.
Exports which had clocked growth rates of 20 per cent during last year are expected to perform well during the year after posting double digit figures during the first few months.
Bhattacharya said that India's comparative advantage lay with services sector particularly in software and outsourcing business as the country possessed a large pool of highly skilled English speaking workforce.
He, however, cautioned that to take advantage of the changes, domestic enterprise would have to organise itself into groups.
In the case of pharmaceuticals and bio-technology despite inherent advantages, growth was hampered due to restrictions imposed by WTO regime, he said adding that country could otherwise flood the world markets with competitive goods.
Bureau Report