ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

exportSubscribe to export

Export-induced Loss in Employment and Earnings during the First Year of the COVID-19 Pandemic

The COVID-19 pandemic has been an unprecedented exogenous shock in the world economy unlike the global financial crisis in 2008, which was endogenously determined in the structure of capitalist financial market. Given the fact that Indian export sector significantly contributes to the Indian economy in general and employment in particular, it is worth examining how the Indian gross domestic product and exports changed in comparison with the world GDP and world exports respectively, in the first year of the COVID-19 pandemic in 2020–21 vis-à-vis the GFC in 2008. Which industries are affected the most, in terms of export loss, during this COVID-19 crisis? What have been the consequences of these falling export on employment and earnings in the Indian export sector? This study estimates that in the COVID-19 year 2020–21, Indian exports have fallen by `3.74 lakh crore, with a plausible loss of direct employment by 5.06 lakh and an estimated loss of earnings around `12.4 thousand crore across 85 commodities.

The Indian Economy

Deadly and frightening as it appears, it is still too early to estimate the severity of India’s Covid-19 second wave. Unlike the transatlantic countries where it appears to have peaked, India’s second wave is still trending upwards. While the second wave is more devastating, India’s unpreparedness is evident. India needs to recognise that such pandemics will come again. It needs to diversify and secure its supply chains, vaccine output, and upgrade its poor healthcare infrastructure. The Indian economy has been badly hit by the pandemic, with one of the highest output losses amongst major economies. One of the possible reasons for this is the limited fiscal support despite a stringent lockdown, with most of the heavy lifting done through monetary measures. Going forward, its economy needs to overcome several challenges before it can return to its former high growth trajectory.

The Political Economy of Drug Quality

This paper presents an analysis of the political economy forces underlying the new conceptualisation of drug quality in the Indian pharmaceutical industry, consequent upon the process of globalisation and liberalisation and a stricter IPR regime. It examines how these forces have shaped the increasingly complex construction of drug quality, both globally and in India. It also comes up with a comprehensive multidimensional definition of drug quality incorporating a range of parameters.

Spices Export from India

Although Indian spices exports have been increasing in quantity and value and cover a large number of countries, future prospects depend on exporters' ability to meet quality standards set by importing nations. Various programmes initiated to ensure the export of clean and hygienic spices should go hand in hand with marketing and export development strategies.

Textile Exports: No Time to Lose

Alarmed by the announcement of preferential trade concessions to Pakistan by the European Union, and apprehensive that a similar package may soon be unveiled by the US, India is likely to ask the US for a higher textile export quota during prime minister Atal Behari Vajpayee’s visit to Washington this month. The government and industry are fearful that the move by the major markets for India’s textiles and garments will deal a further blow to already grim export prospects. During AprilAugust 2001 overall exports fell by 2.3 per cent from their yearago levels; textile exports, however, collapsed by a huge 17.3 per cent during the same period. With the global economy already lurching towards recession and additional strains caused by the terror attacks in the US and the subsequent strikes against Afghanistan, India may find it increasingly difficult to meet the government’s export growth target of 12 per cent for the current fiscal year, since textiles account for over 30 per cent of the country’s total export earnings.

Improving India's Exports Improving India's Exports

India's garment and textile exports are likely to face fresh challenges with the phasing out of the Multi-Fibre Arrangement by 2005, as well as several regional trade treaties, such as NAFTA. Strong concerted policy action is needed, following up on the abolition of small-scale industry reservation for the garment sector, to enable it to grow rapidly and provide foreign exchange and employment in the Indian economy.

Basis of China's Competitiveness

Absence of a land market, production for export, an educated labour force and a greater identification of labourers in a large number of enterprises (the township and village enterprises) with the results of their labour are some of the factors accounting for China's higher productivity and thus competitiveness in the world market.
Back to Top