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Firm Level Export Performance

IBE assignment 1
Topic – Firm level export performance

INDIA’S EXPORTS

India’s merchandise exports increased from US $ 63.8 billion in 2003-04 to US $ 162.9 billion in 2007-08 recording average annual growth rate of 26.4% during the last four years.

|Year |Exports |%Growth |Imports |%Growth |
|2003-2004 |63.8 |-- |78.1 |-- |
|2004-2005 |83.5 |30.8 |111.5 |42.7 |
|2005-2006 |103.1 |23.4 |149.2 |33.8 |
|2006-2007 |126.3 |22.5 |185.6 |24.4 |
|2007-2008 |162.9 |29.0 |251.4 |35.5 |
|2007-08(Apr-Nov.) (P) |99.9 | |153.1 | |
|2008-09(Apr-Nov.) (P) |119.3 |19.4 |203.6 |33 |

This has been possible majorly due to the steps taken by the government to arrest the decrease in exports despite of the uncertainties in the economic atmosphere all over the world. The 10 step agenda of the government was as follows –

• Excise duty reduced across the board by 4% for all products except petroleum products and those products where current rate was less than 4%

• Interest subvention of 2% has been provided till 31.3.2009, to the following labour intensive sectors for exports: Textiles (including Handlooms), Handicrafts, Leather, Gems & Jewellery, Marine Products and SMEs

• Additional funds of Rs3500mn provided for export incentive Schemes

• All items of handicrafts included in Vishesh Krishi and Gram Udyog Yojana

• Back-up guarantee to ECGC for up to Rs.3500mn

• Rs1,100 crore provided to ensure full refund...