Economic growth is linked with a rapid export growth. In fact, all fast-growing economies of the developing world are also export success stories. In an open economy framework, the strategy for development is increasingly focusing on export-led growth through optimal utilization of our comparative advantage vis-à-vis the rest of the world. Progressive export orientation of the economy would not only yield efficiency in resource utilization but also to other benefits, which have often been overlooked. Because of expanding domestic market beyond national borders it would enhance and maintain the rate of return on productive investment and raise the rates of domestic savings and investment essential for rapid growth. It would also impart resilience to the economy to successfully overcome external shocks. In the last 15 years, i.e., from 1985-86 to 2000-01, the contribution of exports to the GDP has increased from a level of 3.92 per cent to 10.1 per cent. The increase in the country’s export earnings has been used to finance growing imports. It also implies that the dependence on other sources of foreign exchange to finance imports has declined during the period.

Global Trade Performance
The global output increased only marginally and world trade decreased in sharp contrast to the preceding year when both trade and output expanded at record rate. The value of world merchandise export shrank by 4 per cent to US $ 6.2 trillion in 2001. This was the largest annual decrease recorded since 1982. The main reasons of weakening in global economic activity were the almost simultaneous slow down in three major economies-USA, EU and Japan from the third quarter of 2000 onwards and the September 11, 2001 events in USA.
Within Asia, India and China are the only two leading exporters of merchandise trade that registered an export growth of 4 per cent and 7 per cent respectively in 2001 over the previous year. India’s merchandise export share in world export has increased from 0.41 per cent in 1992-93 to 0.6 per cent in 1998-99 and to 0.7 per cent in 2001. 
As per the dis-aggregated data provided by DGCI&S for major heads of export for the period April-March, 2001-02, some of the items of exports have registered a positive growth in terms of dollar. These items are - sugar and molasses (237.88 per cent), processed food (6.28 per cent), plastic and linoleum products (6.06 per cent), electronics (10.22 per cent), petroleum products (12.31 per cent), wheat (206.97 per cent), engineering Goods (0.08 per cent), agri and allied (4.24 per cent), ores and minerals (4.97 per cent) and chemicals and related (1.97 per cent).
Exports during April-May, 2002-2003 are valued at US $ 7449.68 million which is 10.46 per cent higher than the level of US $ 6744.25 million during April-May, 2001-2002. 

Export Strategy, 2002-07
With a view to sustaining the country’s export growth, a Medium Term Export Strategy (MTES) was announced this year. The Medium Term Export Strategy gives a road map for the export sector. With the help of macro and sector-wise strategies, it would work towards increasing India’s share of merchandise exports to 1 per cent of world exports by 2006-07. The export projections show that India needs to achieve 11.9 per cent Compound Annual Growth Rate (CAGR) for the exports for the next five years, i.e. 2002-2007, to reach 1 per cent of world exports. While the existing scheme of the Ministry of Commerce have been further strengthened, new schemes like Market Access Initiative (MAI) and Assistance to States for Infrastructure Development for Exports (ASIDE) have also been launched recently.

Achievements
For the first time a conscious effort has been made to involve the States in the export effort of the nation. A prestigious scheme called Assistance to States for Infrastructure Development for Exports (ASIDE) was launched in March 2002. Rs. 725 crore has been allocated for the Scheme. Of this 80 per cent will go the States. Half of the allocations will be based on export performance and the rest on growth in exports so as to take care of the concerns of both the developed and the less developed States.
In 14 States 28 agricultural export zones have been approved involving an investment of Rs. 781 crore. The contribution of private parties will be to the extent of Rs. 444 crore, the balance being contributed by the Central Government, its agencies and the State Governments. The projected exports from these zones by the end of the Tenth Plan will be of the order of Rs. 4,000 crore.
Quantitative restrictions on export of wheat and rice products, rice, coarse grains, butter and packaging restrictions on pulses have been removed. The ceiling on onion exports has been enhanced. Agricultural exports excluding marine, tea, coffee, cotton and castor oil which were at Rs. 16,673 crore during 200-01 have increased to Rs. 18,667 crore during the year 2001-02 thereby showing an increase of Rs. 1,894 crore.
The ambitious scheme, MAI, launched on September 19, 2001 has substituted the existing instruments for neutralizing handicaps of domestic exporters by those compatible with the WTO regime. The scheme identifies priorities for research studies and provides funding support for implementing the recommendations. A large outlay of Rs. 552 crore is assigned for this scheme in the Tenth Plan. Last year, 34 projects were approved including 29 market studies. Items of assistance included setting up a facilitation centre in the Netherlands for export of cut flowers, transport assistance for coffee, mango promotion programme, organizing India Soft to showcase our IT services and software capabilities.