Planning Commission Working Group on Industrial Planning for Exports in the Eighth Five Year Plan

Abstract

Unlike any other activity in organised business in India, export by its very nature, is more heterogeneous and uncertain. The traditional role of industry in a resource-short economy, protected from competition, was not an ideal environment to nurture dynamic export. Under these circumstances, domestic products have virtually no export market, except under limited bilateral deals, and exports tend to be predominantly derived from natural products and commodities. In order to improve export performance, two routes are worth considering. One is to modernise selected domestic industry to reduce cost, improve quality and become globally competitive (overcoming tariff barriers). The second is to set up industries dedicated to generate exports with appropriate linkages to domestic industry.