Wrong turn inwards

Exports no longer a manufacturing priority

India is fortunate to have a large base of domestic consumers, which, to some extent, insulates the economy from the tides of global demand. But this does not mean that growth and economic security can be attained without the help of a healthy focus on exports. Unfortunately, the numbers suggest that this process is not currently underway in India. In fact, if anything, matters have moved in the opposite direction. Within the private corporate sector, in spite of some notable success stories in sectors such as mobile handset manufacturing, there has been a shift away from, and not towards, exports. As this newspaper reported on Wednesday, while more than 18 per cent of sales in manufacturing were exported in 2012-13, that proportion dropped below 7 per cent in 2022-23. And, on the basis of the data set managed by the Centre for Monitoring Indian Economy, this may fall further this financial year.