A classic colonial economy is one which exports mostly raw materials and imports finished goods. India during the first five months of the financial year – April to September – saw a boom in its export of raw materials ranging from rice and cereals to iron ore. While all its big ticket manufacturing exports from gems and jewellery to garments and engineering goods shrank massively.
Though officially the government is tight-lipped, the trend has more than worried the Mandarins running India’s Udyog Bhavan which oversees the country’s trade affairs. “It’s worrying business. The fact is our big ticket items like gems and jewellery, ready-made garments, leather goods, engineering products, electronics, have all contracted by between 15 -55 per cent,” said analysts.
The only big ticket manufacture which did well was Pharmaceuticals, quite understandably because of Covid
In contrast rivals like Vietnam and Bangladesh managed to post positive figures for their export of manufactures ranging from garments to light engineering. Mistrust of China in the global supply chain is potentially positive for India, but till now that mistrust has led to increases in orders from its rivals, not for India.
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