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. 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.
Peter Gallagher is student of piano and photography. He was formerly a senior trade official of the Australian government. For some years after leaving government, he consulted to international organizations, governments and business groups on trade and public policy.
He teaches graduate classes at the University of Adelaide on trade research methods and the role of firms in trade and growth and tweets trade (and other) stuff from @pwgallagher