{"id":248621,"date":"2023-06-19T19:55:45","date_gmt":"2023-06-19T14:25:45","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=248621"},"modified":"2023-06-19T19:55:45","modified_gmt":"2023-06-19T14:25:45","slug":"steering-sustainable-trade-india-needs-to-push-manufacturing-exports","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/steering-sustainable-trade-india-needs-to-push-manufacturing-exports\/","title":{"rendered":"Steering sustainable trade \u2013 India needs to push manufacturing exports"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201c<\/strong>Steering sustainable trade\u00a0\u2013\u00a0India needs to push manufacturing exports<\/strong>\u201d published in Business Standard <\/strong>on\u00a019th<\/sup> June 2023<\/strong>.<\/p>\n

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

Relevance: <\/strong>concerns with declining exports in India and measures needed<\/strong><\/p>\n

News<\/strong>: India’s merchandise exports have been struggling, with declining for fourth consecutive month in May.<\/p>\n

What are the highlights of the merchandise exports data?<\/strong><\/h2>\n

The value of exports was $34.98 billion in May, down from $39 billion in the same month last year.<\/p>\n

Even though the imports have declined, the trade deficit expanded to a five-month high of $22.12 billion.<\/strong><\/p>\n

Among the key sectors, 17 out of 30 experienced a contraction in exports, including petroleum products, gems and jewelry, and engineering goods. However, electronics exports performed well, showing over 70% growth<\/strong>.<\/p>\n

What are the challenges with Indian exports? <\/strong><\/h2>\n

The weakness in the global economy poses<\/strong> a near-term challenge for India’s exports.<\/p>\n

According to the projections of the Organization for Economic Co-operation and Development (OECD<\/strong>), global economic growth is expected to slow from 3.3 percent in 2022 to 2.7 percent in 2023.<\/p>\n

Additionally, the growth rate in the US is also expected to decline from 1.6% in 2023 to 1% in 2024.<\/p>\n

Further, the continued tightening of financial conditions is expected to affect demand.<\/strong><\/p>\n

What are the future projections for the exports?<\/strong><\/h2>\n

India is expected to maintain a manageable current account deficit (CAD)<\/strong> due to lower commodity prices and a surplus in trade in services.\u00a0<\/strong><\/p>\n

As per the Chief Economic Advisor<\/strong>, the CAD was expected to remain under 2 percent of GDP this fiscal year.<\/p>\n

Moreover, the inflation rate in OECD countries is expected to decrease from 9.4% in 2022 to 6.6% in 2023. However, despite this, the inflation rate will still remain significantly above the medium-term target.<\/strong><\/p>\n

Therefore, financial conditions in advanced economies are expected to remain restrictive in the future<\/strong>, which will have negative effects on global output and fund flows.<\/p>\n

What measures have been taken by India to boost its export?<\/strong><\/h2>\n

The Indian government is taking measures to boost exports by utilizing its investment promotion agency and diplomatic missions<\/strong>, with a specific focus on 40 countries that make up around 85% of India’s exports.<\/p>\n

In terms of policy,<\/strong> the government is working on a twin strategy<\/strong> of export promotion and import substitution.<\/p>\n

However, the effectiveness of this strategy remains uncertain in the current global economic and trade environment, especially when India is reluctant to engage in large trade agreements.<\/p>\n

What can be the way ahead for India?<\/strong><\/h2>\n

As per a recent report, India’s top export items are primarily petroleum products, while mobile phones have entered the top five rankings in 2022-23.<\/p>\n

Therefore, India needs to expand its achievements in the mobile phone sector to other areas to achieve sustained success<\/strong>.<\/p>\n

Increasing manufacturing exports<\/strong> will not only contribute to long-term stability in external accounts but also generate much-needed employment opportunities for India’s growing workforce.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cSteering sustainable trade\u00a0\u2013\u00a0India needs to push manufacturing exports\u201d published in Business Standard on\u00a019th June 2023. Syllabus: GS 3 \u2013 Indian Economy \u2013 Growth & Development Relevance: concerns with declining exports in India and measures needed News: India’s merchandise exports have been struggling, with declining for fourth consecutive month… Continue reading Steering sustainable trade \u2013 India needs to push manufacturing exports<\/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":[10503,216],"class_list":["post-248621","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":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/248621","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=248621"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/248621\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=248621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=248621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=248621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}