I (Meaning and importance of Exports) Unit Structure

Reasons/causes of India‘s poor share in world trade 
Exporter- related 
General causes/reasons 
Causes/reasons 
Poor quality 
● Poor infrastructure 
High prices 
● Presence of good
Inadequate promotion domestic market 
Poor follow-
up of sale ● Documentation and
Poor negotiation skills formalities 
● Negative attitude of overseas
Buyers
● Problem of trading blocs 
I) Exporter 
–Related causes/reasons 
(1) Poor quality 
One of the main reasons for poor performance of Ind
ia‟s 
export trade is due to the poor quality of products. A good number 
of Indian exporters, especially, the small-scale exporters do not 
give much importance to quality control. Due to problems in quality, 
the Indian exporters do not get orders from foreign buyers. There 
are also cases, where Indian goods are rejected and sent back to 
India by foreign buyers. 
(2) High prices 
The price of Indian goods is higher as compared to other 
Asian countries. The price of Indian exports is high due to higher 
value of Indian rupee vis-a vis the value of some of the other Asian 
countries such as Malaysia, Thailand, Philippines etc., some of the 
Indian exporters quote higher prices in order to make higher profits 

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per unit sold. The price of Indian goods is also affected by high 
transaction costs, and documentation formalities.
(3) Inadequate promotion 
Promotion is vital for export marketing. However, a good 
number of Indian exporters do not give much importance to 
promotion. Apart from advertising, and sales promotion, Indian 
exporters must participate in trade fairs and exhibitions. But in 
reality, a good number of Indian exporters are not professional in 
advertising and sales promotion. They also do not take part in trade 
fairs and exhibitions, and if they do so, they lack professional 
approach in handling the visitors at the trade fairs and exhibitions.