Inward Remittances to India's Rescue

India’s external sector is of some concern. Merchandise exports have not improved in recent months.

- Dr. T. K. Jayaraman

India’s share of world exports has been below the average rate of 2% of the previous decade despite the slowing down in the global pandemic of Covid-19 in recent months. In the first quarter of 2022, India’s exports of petroleum products were given a big boost as the sanctions by advanced countries against Russia’s exports of natural gas and fuel to European Union member countries worked to India’s advantage. The EU and the West in general did not mind their indirect imports of the Russian crude refined products which were processed in India.

That runs parallel to the famous dictum of the Chinese by a paramount leader of the last century, Deng Xiaoping (18941967) who, re-interpreting the Karl Marx- Lenin- Stalin theoretical approach to Chinese variety of modern communism wrote: “It does not mater whether the colour of the cat is black or white, as long it catches the mice”. He thus rationalised the use of much detested capitalist tools of free trade and foreign investment as well international free enterprise and mobility of capital for promoting domestic communism. So too ignored was another notorious pronouncement by the US Secretary of State, John Foster Dulles during the cold war era that political neutrality in a bipolar world of free world versus totalitarianism was nothing but “immorality”. So all is fair, if it is good to one’s own advantage.