COMPOSITION OF COMMODITY CHANGES IN INDIA’S EXPORTS SINCE POST LIBERALIZATION

The policy changes effected after 1991-92, went far beyond those accompanying earlier balance of payments crises. Several factors contributed to this greater scopes and depth. First, there was severity of crisis itself and it was estimated that foreign exchange reserves were no more than two weeks imports when initial measures were taken. Second, it was evident that fiscal deficit had been the major factor contributing to the crisis and had to be sharply curtailed. Third, over time, a large number of people expressed their discontent with India’s slow growth. Fourth, the disintegration of Soviet Union further altered perceptions and undermined support for state dominance of economic activity. Fifth and most important, the economic policy team lead Finance Minister Dr.Manmohan Singh supported by Prime Minister Narasimha Rao was Convinced that economic reform was essential if India was to improve its economic performance. The crisis provided more than the visual room to change the policy regime. The reform proceeded slowly and gradually structural changes began to take place in 1992.The main areas chosen in the initial phase for reforms were tariffs, exchange rates, non tariff barriers and capital flows. Many of the reforms affected in the capital flows had major impact on domestic monetary system, which was significantly liberalized. In 1991, import licensing on intermediate inputs and capital goods accounting for approximately 30 percent of the tariff lines remained subject to licensing. It was only after a challenge by India’s trading partners in the Dispute Settlement Body (DSB) of the WTO that these goods were freed of licensing decade later in 2001.This paper analyzes the trends in India’s exports using the time series data for the period 1990-91 to 2019- 2020.On study it revealed that the composition of India’s foreign trade has undergone substantial changes, particularly, after the liberalization and globalization. Our major exports now includes manufacturing goods such as Engineering Goods, Petroleum Products, chemical and allied products , Gems and Jewelleries,Textile,Electronic Goods and Information Technologies related services sectors etc, which constitute over 80 percent of our expert basket. The study is focusing on the structured changes in the composition of commodities exported from India during last more than three decades since 1990-91(Post reform period). The dominance pattern is Heavy industries, Gems and Jewelleries and Services sector. Over all mobility and turn-over is 12.3 percent per annum on an average basis. The annual compound growth rate (ACGR) of concentration ratio of composition of commodities is positive and statistically significant. Average value of concentration ratio is 0.075.The increasing trend of concentration ratio has been supplemented and complemented to the dominance pattern. India now has significant share in the world trade. India is required to make its commodities more competitive at the world trade level. It is also required to add new commodities and services at competitive price in the export basket for increasing export performance .Hence; India needs a comprehensive and definite policy measure and integrated efforts. This study elaborately analyzed various aspects of commodity composition and Directional changes reflected in India’s exports since Post-Liberalization period.