Amid trade slump, signs of investment pick-up

Source: The post is based on the article “Amid trade slump, signs of investment pick-up”  published in The Hindu on 19th August 2023

What is the News?

India’s merchandise exports have faced a decline.But the growth in imports of electronics and machinery suggests domestic demand and investments are picking up.

India’s Trade and Investment Figures:

Decline in exports: India’s exports fell by 15.9%.This decline in exports appears broad-based and the slowdown in demand is not just stemming from the West, but also from emerging markets, especially the Asia-Pacific, India’s largest regional export destination. 

Imports Growth: India’s exports has fallen.But the imports of electronics and machinery has hit a record high at $4.7 billion.This suggests increased domestic demand and private investments.

– For instance, five out of fifteen key import categories saw growth. Electronics grew by 14.9%, and machinery reached a record monthly import of $4.7 billion.

Trade Deficit: The trade deficit in July rose to $20.7 billion.Some economists caution that the trade deficit could grow more in the future due to rising commodity prices and export restrictions on agricultural products.