It is now widely recognised that India's export receipts will have to
be more than doubled by 1970 if the Indian economy is to become
self-reliant even by the Fifth Plan.
From the short run point of view also, the case for a vigorous drive is
not less strong. A large part of the industrial capacity of the country
is lying unutilised for want of imported components and raw materials.
Thus the availability of extra foreign exchange made possible by an
incremental rise in export earnings would increase the country's
national income by nearly the full amount of value added in manufacture
in sectors of idle capacity.
In addition, if the output of some crucial bottleneck products could be
raised through an increased supply of raw materials, the gains to the
economy would be further increased insofar as the output of many
complementary industries would also rise.
Above all, the country's foreign exchange reserves having been nearly
exhausted, we face a situation where even a minor shortfall in the
amount of aid or a decline in export earnings could induce
disproportionately adverse effects on the country's economic health.
Thus the task of increasing export earnings here and now assumes a new
urgency.
