Significance of making rules simple to boost export

Source-This post on Significance of making rules simple to boost export has been created based on the article “Policymakers must simplify trade rules to boost exports” published in “The Hindu” on 13 April 2024.

UPSC Syllabus-GS Paper-3- Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

Context– The Asian Development Bank (ADB) increased its prediction for India’s GDP growth this fiscal year, ending on March 31, 2025, to 7% from the previous 6.7%. This is because of strong public and private investments and the expected recovery of consumer demand in rural areas.

What are the concerns expressed by The Asian Development Bank (ADB) report?

1) It’s prediction about India’s GDP might be proven wrong due to global risks like a sudden increase in oil prices or prolonged high interest rates in Western countries to control inflation. India could be particularly affected by these high interest rates because the rupee is sensitive to changes in Western interest rates.

2) There is a delay in the completion of projects by private sectors.

What are the limitations of report of The Asian Development Bank (ADB)?

1) It did not address the issue surrounding the integrity of India’s national income data or concerns raised about the heavy influence of government tax receipts on final GDP.

2) It did not highlight the absence of significant structural reforms in India, particularly since the COVID-19 pandemic.

Read more- Empowering MSMEs for export success

What should be the way forward?

1) The government should follow ADB’s suggestion to create large-scale special economic zones with an easier policy environment to boost exports.

2) In the backdrop of highly unstable situation in West Asia and disruptions to the usual shipping route through the Red Sea, India should need to quickly improve its integration with global supply chains and upgrade its logistics infrastructure.

Question for practice

Highlight the concern expressed by The Asian Development Bank (ADB) report regarding Indias GDP growth rate? What steps can be taken to address these concerns?