Issues in strategy for export promotion: an inter-industry analysis

Abstract

This article points toward the need for integration between the new Exim policy and the Eighth Plan in India by considering direct and indirect effects of a unit increase in demand for exports as welt as forward and backward linkage coefficients in each of the 47 commodity producing sectors using the CSO's latest input-output tables Its main findings are: (a) if our objective is to achieve diversified high growth in the economy, the agri-based manufacturing sectors may be taken up for intensive export-promotion measures considering their linkages and DI effects; (b) the degree of export orientation of a sector varies inversely with the linkages of the sector with the rest of the economy; and f(c) the import intensity of export-oriented sectors is higher than that of other sectors. There is, thus, an urgent need to integrate export promotion measures in our overall development strategy.