From spices to steel to drugs, India’s exports are being hammered
if India has to become a developed country, it must push its exports because there is only so much it can consume domestically. China’s stupendous economic growth was boosted by its exports. India must focus on exports to achieve a consistent 10 per cent economic growth in the long run, Arvind Panagariya, Chairman of the 16th Finance Commission, has said. The government is already trying to increase exports through various measures.
Despite global trade uncertainties, India’s exports are charting a new course with bilateral agreements, free trade agreements (FTA) and uncharted territories like Africa, Latin America, and Central Asia. India has seen a surprising surge in exports of precious metals, minerals, automobiles, electronics, pharmaceuticals, organic chemicals, textiles, spices and defence equipment. The implementation of initiatives such as Production-Linked Incentives (PLI) and the Make in India campaign has fueled ..
Just as India tries to tap a huge export opportunity despite emerging and persisting geopolitical tensions that restrict movement of goods, it also faces strong challenges ranging from quality and trade restrictions. Two years ago, India-made cough syrups were linked to deaths of children in several countries. Now, Indian spices have come under scrutiny for contamination. The developed countries are also putting environmental restrictions on India’s exports.
Wrong turn on the spice route
Hong Kong and Singapore have reportedly banned the sale of popular Indian brands MDH and Everest after detecting carcinogenic chemical ethylene oxide in their products. This led to a mandatory recall from shelves. The primary violations in these incidents include the presence of ethylene oxide, a carcinogen used as a fumigating agent, and salmonella contamination, a common bacterial cause of foodborne illness.