I (Meaning and importance of Exports) Unit Structure

(5) Problem of Trading Blocs 
Indian exporters are affected due to the presence of trading 
blocs. There are some powerful trading blocs in the world such as 
NAFTA, European union and ASEAN. The trading blocs reduce onr 
eliminate trade barriers on member nations, where as, they impose 
the trade barriers on non-members. Since India is not a member of 
the powerful trading blocs, Indian exporters do face problems to 
export goods to the member countries of the trading blocs. 
2.8 SUMMARY 
Though we are still not out of the crisis, there is a greater 
degree of confidence, particularly in countries with strong 
fundamentals like India and china which have weathered the crisis 
with great dexterity and spearheaded the recovery. 
India's chief exports include computer software, agricultural 
products (cashews, coffee), cotton textiles and clothing (ready-
made garments, cotton yarn and textiles), gems and jewellery, cut 
diamonds, handicrafts, iron ore, jute products, leather goods, 
shrimp, tea, and tobacco. The country also exports industrial 
goods, such as appliances, electronic products, transport 
equipment, light machinery as well as chemical and engineering 
products. India imports rough diamonds, cuts them, and exports the 
finished gems. Services exports includes transportation services, 
Software services, Travel receipts which are expected to grow in 
the second half of 2009-10. 
The macro economic reform policies were introduced by the 
Government of India in the industrial, commercial and financial 
sectors. The trade policy reforms aimed at creating an environment 
for achieving a quick quantum jump in exports. Major changes were 
effected in the Exim Policy to serve this purpose. Commodity-
specific as well as country-specific liberalization measures were 
resorted to promote further exports. The commerce ministry and 
the associated organizations were re-oriented to bring about a 
totally exporter-friendly climate. 
India, with 16% of the world‟s 
population, would have had to increase its imports and exports by 
32 times to just reach the world‟s „average‟. India remained poor - 
its people had to survive on less than a dollar a day. 

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