The book “Export-led Growth Strategy: A Policy Choice for Development in India” is carried out in light of the theoretical controversy of export-led growth versus domestic demand-led growth as policy options for development of developing countries. Export-led growth strategy was advocated after phenomenal success of the East Asian countries in achieving higher rates of economic growth by adopting this strategy in the past. In recent times, two main developments have put a question mark on the role of this strategy in the growth process of developing countries. One, the economic crisis which broke out in the US and afterwards spread all over the world, has raised serious doubts on importing capacities of developed countries and growth prospects of exporting countries dependent on the former. Second, emergence of China as a country aspiring growth through exports has blocked the way for other developing countries to join this race as other countries cannot compete with China in keeping the production cost low, specially the labour cost. In such a situation, emerging economies have found a way out in adopting domestic demand-led growth strategy.
The present study evaluates the pre-and post-liberalization policies relating to the external sector to find out Indian planners views on the subject and empirically tests the impact of policy changes on exports and growth. The study also tries to find out the impact of export growth on economic growth and the impact of domestic demand on economic growth of the country. The empirical analysis reveals that in spite of the export promotion policies in the post-reform period, the relative impact of domestic demand on growth was stronger. Moreover, the relationship between export growth, economic growth and other factors like Import of Goods and Services, International Capital Flows, Foreign Exchange Reserves, Private Final Consumption Expenditure, Remittances, Terms of Trade, Gross Domestic Capital Formation, Real Effective Exchange Rates in pre-and post-reform periods is also analysed. The research also identifies emerging export-oriented industries and their import intensity in the recent years. Besides, a case of Information Technology industry in India is separately studied in post-reform period.
Contents :
1. Introduction
2. Export-Led Growth vs. Domestic Demand-Led
3. Impact of India`s External Policies on Trade Performance in Pre-and Post-reform Periods
4. Relation between Export Growth and Economic Growth in India
5. Role of Export-Oriented Industries in Economic Growth
6. Information Technology Industry in India after Trade Liberalization
7. Issues Relating to Foreign Direct Investment
8. Conclusions and Suggestions
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