Bleak outlook for exports

The slump in India’s exports over the past few months has been caused in part by the sharp fall in global oil prices and the relative strength of the US dollar, two trends that are unlikely to be reversed any time soon. New sources of export growth are needed to make up the slack. But structural factors are also holding back export prospects. Unless progress is made in loosening labour and land acquisition laws, the government’s target of more than doubling exports from current levels by 2020 looks increasingly unrealistic.