India’s Trade Gap Rooted in Firms’ Capability Deficit, Experts Say

In a recent report analyzed by Indian economists, the persistent trade deficit of the country is largely attributed to a shortfall in production capabilities at the firm level.

The research highlights that even with a sizeable domestic market, many small and medium enterprises lack the technology, process efficiency, and market connectivity necessary to compete internationally, limiting India’s export potential.

The findings suggest that targeted investment in training, technology and infrastructure for small‑scale producers could significantly reduce the trade gap. Source: Google News – Manipal.