The pride of the economy -- exports from India -- are in a slump. While there are signs of recovery in some segments, there are some disturbing trends in earnings.

Even though the export earnings are going up in rupee terms, the returns in dollar terms have been falling. If 1990-91 is taken as a base year with Rs 100 as earnings, the rupee earnings went up to Rs 172.5 in 1996-97. But on the other hand, the dollar earnings fell to Rs 87.3 during the same period.

One way to increase dollar earnings is to put more value-added products in the exports basket. Currently, the exports consist mostly of low value-added products. Only a few sectors such as software is moving towards value-added products.

Another strategy is to identify India's strengths and attempt to focus on those only. This will allow economies of scale which will reduce costs and improve earnings.