- Economic Stability:
An extreme fluctuation in the economic system of any country is just too worrying. This can initiate moderate to high inflation rates, crash in the stock market, and much stressing outcomes. In such a situation, folks lose their sureness in their economy, and this hits investment harshly. A good export rate reduces the same to a good extent and thereforeguarantees financial stability.
- Foreign Investment:
Not merely peace and a steady government are the pre-requisites to entice foreign investment. There is somewhat more. Good exports degree boosts investors to capitalize in countries, mainly developing countries like India. Yet again, foreign investment is important to refill the gap amid national savings and investment in a given economy to have a greater economic growth rate. For instance, in India, Prime Minister Mr. Narendra Modi has taken numerous steps such as relaxing FDI norms and guaranteeingsupportive tax norms to increase NRI investment.
- Inflation Rate:
A high export rate keeps the inflation meter under a scanner and a low inflation rate lets the export of goods to not collapse. Therefore, as said previously, export of a country has a robust co-relation to the inflation rate. For instance, India has achieved well in the export of oil-based goods, precious stones, cereals, fabrics and heavy machinery in the current years to regulate the inflation rate, that has increased the capacity to raise widespread public protest.
- Domestic Trade
It may sound strange that export encourages internal or domestic trade in a country, but it is afact. When there are more products of global standards in excess amount that an industry can export, a feeling of competitiveness inspires industries in the domestic market to turn out to be more productive and domestic trade prospers.
When an industry accomplishes well in the export of finished or factory-made goods, there is a rise in employment opportunities. For instance, in India, both the fabric industry as well as gem and jewellery industry are the big performers in export, and both known for beinglabour-intensive have generatedhuge employment opportunities for millions of Indians. It is not an overstatement that the Indian fabric industry gives a direct employment to an estimated 5 million people only following the agriculture sector.
- Foreign Currency
Lower rate of country’s exports mean limited foreign exchange, i.e. less foreign currency to make essential imports from other countries, that could prove terrible. For India, having a decent foreign currency reserve is a matter of great importance. To fulfil the requirement of its huge population, India has to import large amounts of oil, chemicals, iron and steel, fruits, dried vegetables and lots more. So, a prominence is also on increasing the production of all these items.
In addition to all the above reasons, a country needs to emphasize on export to contribute a huge share of the country’s high GDP growth. ETTINTL is thus offering Export- Courses and Foreign Trade Courses in Mumbai and indirectly making some sincere efforts of creating experts in the field of international trade.