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India must rejig its trade policy; make SMEs integral to export policy in the current testing times of the economy. Comment.

Topic : Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

5. India must rejig its trade policy; make SMEs integral to export policy in the current testing times of the economy. Comment. (250 words)

Reference: Financial Express 

Why the question:

The article presents a detailed narration of the need to rejig the current Trade policy amidst corona times.

Key Demand of the question:

Discuss in detail the importance of making SMEs integral to export policy of the country.

Directive:

Comment– here we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.

Structure of the answer:

Introduction:

Start by highlighting the fact that everywhere, the struggle to get over the unprecedented scenario arising out of the Covid-19 pandemic continues. As economies of the world are integrated and intertwined through global value-chains, none of the economies has remained unaffected; India is no exception.

Body:

India’s exports and imports (both merchandise and services), estimated at $141.82 billion and $127.76 billion, respectively, during April-July FY21, have contracted by 21.9% and 40.7% when compared to the same period last year. This unequivocally points to the saga of how badly the pandemic has impacted India’s global trade.

Explain why a broader trade policy review is what India needs at this juncture, for speedy recovery amidst changing dynamics of trade policies globally.

Discuss the need to make SMEs integral to India’s trade policy.

Conclusion:

Conclude with way forward.