Deepening India’s export basket
As India elects a new government in the summer of 2014, many analysts have vociferously discussed the incumbent government’s domestic economic management. Yet less attention has been paid to India’s external economic engagement. India has many domestic bottlenecks and structural constraints which stymie efforts to increase exports and integrate more deeply with global markets. Over time, this has resulted in a shallow export basket, consisting mostly of raw materials and intermediate goods. There also are growing trade imbalances — particularly with one of India’s key trading partners, China. As talks of a FTA between China and India continue, India needs to acknowledge that increased trade cooperation will do little to boost growth until it addresses domestic structural constraints, trade structure and policy .