Necessity of Exports

Question:Which country economic growth is primarily driven by domestic demand?
(a) Hong Kong’s
(b) Singapore’s
(c) Luxembourg’s
(d) India’s
Answer: (d)
Related facts :

  • According to Hans Timmer, World Bank’s Chief Economist for South Asia Region, India’s economic growth in recent years has been too much driven by domestic demand and its exports were about one third of its potential.
  • High domestic demand resulted in double digit growth of imports, and four to five percent growths in exports.
  • Reccomendations were made that government should focus on export-led growth.
  • As per report of the World Bank on South Asia, economic under performance of South Asian countries is mainly because they are locked on fundamental issues within the domestic economies that have prevented the countries to become much more export-led.
  • Trade liberalization, flexible labour markets skills, trying to address the big problem of the difference between the formal economy and the informal economy, are some of his recommendations for the South Asian countries.

Link:
https://economictimes.indiatimes.com/news/company/corporate-trends