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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.
