<\/p>\n
News<\/span><\/b>: Recently, there has been an export boom in the international market. Therefore, India has fixed a goal of attaining the $400 billion target for the current fiscal year.\u00a0<\/span>\u00a0<\/span><\/p>\n All-around performance of the engineering goods, petroleum products, and chemicals have played a significant part in boosting the merchandise trade of India. <\/span>Factors responsible are: –<\/strong> Higher global\u202fcommodity prices<\/strong> have pushed up the value of Indian export. For example, Petroleum products contribute about 15% to total exports and have grown significantly in the current year.\u00a0<\/span>\u00a0<\/span><\/p>\n –<\/strong> The global economy’s recovery from the pandemic-induced disruption <\/strong>has revived the merchandise exports.<\/span>\u00a0<\/span><\/p>\n –<\/strong> Major share in India\u2019s export basket includes engineering goods, chemicals, petroleum products, and gems and jewellery. These products have higher elasticity to global growth<\/strong>.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n Thus, India\u2019s export performance significantly depends on the pace of global growth.<\/span>\u00a0<\/span><\/p>\n –<\/strong> Global growth is going to be impacted by ongoing geo-political uncertainty.<\/strong> At present, the commodity prices have been pushed up due to this. For example, India\u2019s imports have reached a record high of $589 billion. It has resulted in a trade deficit of $189 billion.<\/span>\u00a0<\/span><\/p>\n –<\/strong> Global growth is going to be impacted by the increase in interest rates by the US Federal Reserve<\/strong> and other large central banks. This could tighten financial conditions in the coming months. <\/span>\u00a0<\/span><\/p>\n –<\/strong> The Covid cases have been surging in China and other countries<\/strong>. Such a surge would affect supply chains. It would result in lower output and higher inflation. <\/span>\u00a0<\/span><\/p>\n –<\/strong> On the policy front, the government has been raising tariffs<\/strong>. It may obstruct India\u2019s participation in the global value chain, which is essential for attaining sustained exports growth.<\/span>\u00a0<\/span><\/p>\n –<\/strong> India also decided against joining the Regional Comprehensive Economic Partnership (RCEP). <\/span>India is negotiating bilateral trade deals with a number of counties, which might take time, and will not compensate for its decision to not join the RCEP. <\/span>\u00a0<\/span><\/p>\n –<\/strong> Higher current account deficit and capital outflow over the coming quarters will put pressure on the rupee.<\/span>\u00a0<\/span><\/p>\n RBI should manage the rupee and allow it to depreciate in a non-disruptive manner. <\/span>\u00a0<\/span><\/p>\n The RBI should not defend the Indian rupee to contain inflation caused by expensive imports. It would affect exports and create longer-term macroeconomic imbalances.<\/span><\/p>\n Source: <\/span><\/b>The post is based on an article \u201cBeyond $400billion\u201d published in the Business Standard on 24<\/span>th<\/span> March 2022.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" News: Recently, there has been an export boom in the international market. Therefore, India has fixed a goal of attaining the $400 billion target for the current fiscal year.\u00a0\u00a0 What are the factors driving India’s exports? All-around performance of the engineering goods, petroleum products, and chemicals have played a significant part in boosting the merchandise… Continue reading On boosting exports: Beyond $400 billion<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216],"class_list":["post-175953","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704902807},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/175953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=175953"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/175953\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=175953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=175953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=175953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What are the factors driving India’s exports?<\/span><\/b>
\n<\/span><\/h5>\n
\n<\/span><\/p>\nWhy global economy is expected to slow down?<\/span><\/b>\u00a0<\/span><\/h5>\n
How India’s policies may obstruct its export growth?<\/h5>\n
What is the way forward?<\/span><\/b><\/h5>\n