Ajit Ranade: India should reinforce its strengths on the external economic front

Trade openness is measured as the ratio of trade to GDP. India's is close to 50%, as per World Bank data. It used to be 7% in 1970, about 15% in 1980 and 1990, and jumped to 26% in 2000 and 49% in 2010. This decadal upward shift shows India's embrace of globalization, especially after 1991. It shows a decisive turn-away from the earlier export pessimism and trade scepticism, and India's acceptance of trade as an enabler of economic growth. For a few years around 2010, the ratio inched up to 55%, before dropping, but has shown a steady rise…