The study focuses on the ‘export openness’ of Indian economy which is expected to have a positive impact on economic growth. The temporal coverage of the empirical analysis carried out spans the period 1970-71 to 2008-09. The research question addressed in the study is whether exports are related to growth and if so, then in what direction? Empirical verification of export-led growth hypothesis by applying various time series techniques in this study confirms both short-run and long-run relationship between exports and economic growth. Bivariate Granger causality test suggests that the direction of causality runs from export growth to GDP growth. This implies that one can use export performance also to predict the growth of Indian economy rather than depending only on the time-series models.
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