I (Meaning and importance of Exports) Unit Structure

(a) Exports to OECD Countries 
The share of total export earnings to OECD countries has 
slightly declined over the years. In 2000-01, the share of total 
export earning from OECD countries was about 52.7%. However, 
the share of total export earning from OECD countries has come 
down to about 38.4% in 2007-08. 
The share of some of the important OECD countries in 
India‟s export trade is stated as follows 
USA 
2000-01 
21% 
2007-08 
12.6% 
UK 
2000-01 
5.2% 
2007-08 
4.1% 
Germany 2000-01 
4.3% 
2007-08 
3.1% 
Japan 
2000-01 
4.1% 
2007-08 
2.4% 
(b) OPEC Countries 
The share of total export earning from OPEC counties has 
increased. In 2000-01 it was about 10.9%. It has increased to 
16.3% in 2007-08. The share of export to UAE has increased from 
5.8% in 2000-01 to 9.6% in 2007-08. 
(c) Eastern Europe 
Over the years, the exports to Eastern Europe have declined 
mainly due to the disintegration of USSR. In 2001-01, the total 
export earning from this group was 3%. It came down to 2% in 
2007-08. The main country in this group is Russia. Its share in 
India‟s export trade has come down from 2% in 2000-01 to 0.6% in 
2007-08. 
(d) Developing Countries 
India‟s exports to developing countries have increased over 
the years. It has increased from nearly 29% in 2000-01 to 42.6% in 
2007-08. Among the developing countries, the major contribution 

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comes from china. China‟s share in India‟s exports has increased 
from 1.9% in 2001-01 to 6.6% in 2007-08. 
2.7 
REASONS FOR INDIA‘S POOR SHARE IN 
WORLD TRADE 
India‟s export performance is poor over the years, since 
independence, India‟s share of the world export trade has been 
ve
ry low. At present India‟s share of the world export trade is 1%. 
The share of export of other developing countries of Asia, namely 
China, South Korea, Malaysia, Singapore and Thailand is much 
more than of India. 
There are several reasons for poor perfor
mance of India‟s 
export trade. The reasons or causes can be broadly divided into 
two groups as shown below.