{"id":218576,"date":"2022-12-15T20:25:36","date_gmt":"2022-12-15T14:55:36","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=218576"},"modified":"2022-12-15T20:25:36","modified_gmt":"2022-12-15T14:55:36","slug":"why-are-indias-slowing-exports-a-cause-for-concern","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/why-are-indias-slowing-exports-a-cause-for-concern\/","title":{"rendered":"Why are India\u2019s slowing exports a cause for concern?"},"content":{"rendered":"

Source<\/strong>: The post is based on the article\u00a0\u201cWhy are India\u2019s slowing exports a cause for concern?\u201d <\/strong>published in The Hindu<\/strong>\u00a0on\u00a015th<\/sup> December 2022<\/strong>.<\/p>\n

Syllabus: GS 3 \u2013 Indian Economy<\/strong><\/p>\n

Relevance: <\/strong>India\u2019s economic growth<\/strong><\/p>\n

News: <\/strong>India\u2019s exports declined about 16.7% in October this year. Imports increased and the trade deficit widened by 50% while Vietnam and Philippines saw an increase in the export.<\/p>\n

What are the reasons behind the decline in exports?<\/strong><\/p>\n

Sectors such as engineering goods, steel and allied sectors saw a decline in exports.<\/p>\n

The reasons are – a)<\/strong> high inflation in the developed region, b)<\/strong> falling demand in the China, US and the EU, c)<\/strong> Russia-Ukraine war, d)<\/strong> export duty levied on steel and allied products to help increase local availability and check the prices, e)<\/strong> leave taken by workers on festivals that impacted the output.<\/p>\n

However, despite these reasons, the Indian economy is expected to grow.<\/p>\n

What are the positive factors for the Indian economy to grow?<\/strong><\/p>\n

According to the Finance Ministry, domestic demands<\/strong> are enough to increase the growth of the economy. It also expects that a re-invigorated investment cycle<\/strong> will lead to growth and job creation.<\/p>\n

The Ministry further said that inflation was due to local factors<\/strong> such as higher food prices rather than imports-based reasons.<\/p>\n

Therefore, it expects that inflation will become lower with the easing international commodity prices and the arrival of the Kharif crop.<\/p>\n

As per the Ministry, consumer inflation<\/strong> has lowered in the month of November and the same month saw the lowest enrollment in MGNREGS.<\/p>\n

Further, private sector capital expenditure<\/strong> will touch six lakh crore this fiscal which would make it the highest of the past six years. Private capex<\/strong> depends on credit or loans from the banking system and this has improved in the past months.<\/p>\n

Although forex reserves<\/strong> have seen decline in recent months, the situation is better than 2013 when foreign investors began pulling out of India\u2019s financial markets.<\/p>\n

Therefore, these reasons prove that even though the exports have seen a decline but Indian economy is on the right track of growth.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cWhy are India\u2019s slowing exports a cause for concern?\u201d published in The Hindu\u00a0on\u00a015th December 2022. Syllabus: GS 3 \u2013 Indian Economy Relevance: India\u2019s economic growth News: India\u2019s exports declined about 16.7% in October this year. Imports increased and the trade deficit widened by 50% while Vietnam and Philippines… Continue reading Why are India\u2019s slowing exports a cause for concern?<\/span><\/a><\/p>\n","protected":false},"author":10320,"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":[216,10498],"class_list":["post-218576","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/218576","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\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=218576"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/218576\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=218576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=218576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=218576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}