Question

How would you expect India’s export orientation policy of recent decades to have affected the economic welfare of (i) China, (ii) the US

Answer 1

India's Export Policies

In the recent times India has adopted a very open trade policy which has increased the exports of small and medium Indian industries but decreased imports. This has affected the China's and US's economy.

1. China has always been famous for being labour intensive because of which it has been able to produce labour intensive goods at lower prices and export it to other country out of which India has been one of the biggest consumer. After this strict import and open export policy India has reduced the imports from China and even started increasing exports to China. Because of various pressures which India has created over China from other international issues, India has declined the China's economy through trade.

2. USA was not a big shark in the labour market but has already very strong and stable economy with specialization in technological sector and innovation sector. India in its past was a big consumer of American techno fields bu now the innovation influential policies of India has started India inventions to take place in India first and then to export them. Now India has even started exporting a lot of category products to America like textiles, hand made, spices, mica etc, which might not have reduced the american GDP but increased Indian GDP at first place.