ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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India's Exports

Export strategy in India confronts several issues, especially the choice of policy instruments. Questions are raised about the utility of the prevailing export promotion schemes, even while these interventions are considered necessary to keep India's exports competitive in the international market. The appreciation of the rupee vis-� -vis the US dollar raises concerns regarding its adverse consequences on export performance. This paper observes a positive association between exchange rate movements and exports, which defies the conventional wisdom. Instead of treating this phenomenon as perverse, as in the literature, the paper underscores the crucial role of explicit or implicit subsidies and market structure. The paper argues for a reorientation of Indiaâ��s export strategy.

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