In a chat with ET Now Chief India Economist,says about 50% of the exports can be explained by domestic bottlenecks.Edited excerpts:Generally speaking, there are two myths out there on India’s exports. One thing is clear that India’s exports are slowing. However, you cut the data by value, by volume, by goods, by services... in all aspects it is slowing. But the myth is that it is slowing everywhere around the world and therefore India is just facing problems that are global in nature and cannot really do anything about it.Here, what we try to do was to look at exports not just in India but across all the other emerging markets with whom we complete in the global markets and I found that in the last couple of years, India’s export has actually slowed more than the slowing of exports in other EM markets. This means that there is some problem which is beyond just world growth that is ailing India’s exports at this point.The second myth is that a lot of people believe that if you depreciate the rupee drastically, then it will improve India’s exports over time. It will cause a rebound in India’s exports. Here we have done some very macro and micro level comprehensive work to show that the rupee is not really the main driver of India’s export slowdown.So let me just explain once quickly what we did -- we looked at goods and service export volumes which is shipments overall and we found that about 50% of the slowdown that we have been seeing in exports can be explained by domestic bottlenecks. About a third, 33%, can be explained by world growth and only the remaining which is only 17% can be explained by the exchange rate There is a lot we can do back at home. We can really work on a lot of the domestic bottlenecks that are there. If we get the sector specific issues corrected, then India’s exports can actually grow much faster given the same rupee level where the rupee is today.At a macro level, about 50% of the slowdown can be explained by domestic bottlenecks but as we drilled deeper, we broke down exports into small commodities like textiles, agriculture products, gems and jewellery, automobiles, engineering goods, software exports and we try to model what was really slowing exports growth in each of them separately.What we find is that there are lots of sector specific problems. For instance. if we can increase cotton productivity , then textile exports will benefit a lot. If we can improve the ease of doing business and more FDI can come into the economy , than a lot of high tech engineering goods exports can benefit.If we can do more on irrigation projects than a lot of agricultural exports could go up. If we can make our integration with the world economy much better and reduce our import tariffs so that the outside world will also reduce the tariffs and a lot of exports across the board can actually benefit. So there is a lot of stuff that can be done. If you look at everything together, you will really find that the rupee is just a small marginal player. There is a lot of other stuff we can do back at home.Yes, that is true. Trade negotiations are something which move very slowly. We have big agencies like WTO that are working on it but many times multilateral trade negotiations which involve different countries move more slowly than bilateral trade negotiations or plurilateral trade negotiations which is basically more than two countries together. My bigger point here is that it is almost lazy to say that depreciate the rupee and exports will revive. Perhaps depreciating the rupee can be counterproductive. Across the world, we found that FDI inflows are generally strong when the rupee or the when the exchange rate of the economy is stable. So if we try to depreciate the rupee too much. then the rupee will become volatile and that will be a dampener for FDI inflows and hurt our exports.There were some murmurs in the market a couple of months ago that the government was perhaps toying with the idea that the rupee should be depreciated as a policy tool to revive exports. This did become a source of concern to a lot of people and this is the reason why I looked into it carefully. I found that it does not really matter as much for a) exports as many other things and b) that it could actually prove counterproductive by bringing in much more volatility and dampening FDI inflows.That is the context of this report but you know generally on outlook on the rupee, I would say at this point the rupee is likely to remain quite stable. There are two forces working on the rupee on either side; on one hand. the macro outlook is very good, BOP balance is strong, inflation is low, growth is reviving and all of that so that should put an appreciating pressure on the rupee.But on the other hand, you also have the RBI whose stated policy is to buy a lot of dollars whenever it gets a chance in order to infuse domestic liquidity and so that should have a depreciating impact on the rupee. Both of these cancel out and in general I am expecting that the rupee will remain stable for a foreseeable future.