Can India double it’s trade share?

The Indi­an Min­is­ter for Com­merce and Indus­try, Kamal Nath, has issued a For­eign Trade Pol­i­cy state­ment in which he says that India will aim to ‘dou­ble its share of glob­al trade’ in the next five years. bq. “We want to facil­i­tate the devel­op­ment of India as a glob­al hub for man­u­fac­tur­ing, trad­ing and ser­vices,” said Kamal Nath. “The aim is also to iden­ti­fy and nur­ture spe­cial focus areas that would gen­er­ate addi­tion­al employ­ment oppor­tu­ni­ties, par­tic­u­lar­ly in semi-urban and rur­al areas.” (“123Bharath”:http://www.123bharath.com/business-india-news/index.php?action=fullnews&id=11468) The tar­get isn’t quite as impos­si­bly ambi­tious as it sounds. India’s share of glob­al trade is very small rel­a­tive to it’s share pop­u­la­tion. Even allow­ing for the dif­fer­ence in wealth between India and Chi­na, the for­mer has a small share of trade for an econ­o­my of it’s size. Table showing a comparison of India and China in population, wealth and trade The expla­na­tion for the very low share of mer­chan­dise trade, how­ev­er, makes the pro­gram to lift India’s share to some­thing approach­ing the Chi­nese share look much hard­er. In order to dou­ble it’s trade share, India would have to dou­ble it’s share of glob­al imports.

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