CONCLUSION

The price elasticities of demand and supply has been empirically estimated for

India’s export for the period 1970-71 to 1993-94 using two stage least square

method of estimation. It has been found that there has not been an increase in

supply corresponding to the inelasticity of demand.

This favourable economic situation should be made use of and India’s share in

world export trade should be increased.Decesion regarding increasing

production should be taken after the detailed analysis.

By considering the various factors of production the supply can be increased so

as to meet the excess demand for export goods. Thereby the favourable

economic situation can be utilised to the advantage of our country.