{"id":259858,"date":"2023-09-13T20:25:31","date_gmt":"2023-09-13T14:55:31","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=259858"},"modified":"2023-09-13T20:25:31","modified_gmt":"2023-09-13T14:55:31","slug":"may-the-twain-meet-look-east-as-much-as-west-for-indian-exports","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/may-the-twain-meet-look-east-as-much-as-west-for-indian-exports\/","title":{"rendered":"May the twain meet: Look East as much as West for Indian exports"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cMay the twain meet: Look East as much as West for Indian exports\u201d <\/strong>published in the \u201cmint\u201d <\/strong>on 13th September 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS3- Indian economy<\/p>\n

Relevance- <\/strong>Issues related to trade<\/p>\n

News<\/strong>– India\u2019s goods exports printed 14.5% lower for the April-July period, having contracted for the sixth month on a trot in July.<\/p>\n

Why is trade with the Asia-Pacific region(APAC) a matter of concern?<\/strong><\/h2>\n

Between April and July, India’s total goods exports<\/strong> contracted by 14.5%<\/strong>. Exports to the APAC region experienced a more substantial decline, down by 22.0%. <\/strong><\/p>\n

Comparatively, the decline in exports t<\/strong>o the United States and the European Union (EU) was lower at 11.5% and 4.8%,<\/strong> respectively.<\/p>\n

The slowdown in exports to the APAC region commenced earlier. In the fiscal year 2022-23, when India’s overall goods exports saw increases of 6.9%.<\/strong> But, exports to APAC markets decreased by 11.2%.<\/p>\n

Most of these regions increased their imports<\/strong> from across the globe. Hence, India’s export slump cannot be attributed to reduced regional demand<\/strong>.<\/p>\n

Furthermore, India’s non-oil exports <\/strong>to the APAC region were down by 12.3% year-on-year in the past fiscal year. But, they increased to both the EU and the US.<\/p>\n

This suggests that the decline in India’s goods exports <\/strong>to APAC was not solely due to lower exports of oil but was a broader issue.<\/strong><\/p>\n

The region’s share<\/strong> in India’s goods exports <\/strong>had been diminishing\u00a0 for a long time. In fiscal year 2018-19, APAC accounted for 33% of India’s goods exports.<\/p>\n

However, in fiscal year 2022-23, APAC’s share had decreased to 26.6%,<\/strong> while the combined share of the US and EU had risen to 34%. <\/strong><\/p>\n

The trade deficit<\/strong> with the region is also an issue. The APAC share in India’s goods trade deficit <\/strong>was 49.6% in fiscal year 2018-19. It increased to 64.7% during April-July of this fiscal year.<\/p>\n

How regional FTAs within the Asia-Pacific region are a cause of worry for India?<\/strong><\/h2>\n

India is not a party to the Regional Comprehensive Economic Partnership<\/strong>. It is considered as the world’s largest free trade pact. <\/strong><\/p>\n

India is also not a party to other significant trade agreements in the broader Asian region, namely the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) <\/strong>and the trade component of the IPEF.<\/strong><\/p>\n

As tariffs among member countries within these agreements continue to decrease, India’s potential for exports <\/strong>to the APAC region could encounter additional challenges. <\/strong><\/p>\n

Way forward- <\/strong><\/p>\n

India should maintain its focus on the APAC region. <\/strong><\/p>\n

The APAC region has a nominal GDP <\/strong>of approximately $32 trillion in 2022.<\/strong> The APAC market surpasses both the US\u00a0 and the Eurozone.<\/p>\n

S&P Global anticipates that APAC will grow at approximately 4%<\/strong>. This growth rate trend<\/strong> is likely to persist in the foreseeable future.<\/p>\n

Therefore, India should explore ways to fully leverage the export potential<\/strong> of this region, particularly considering its geographical proximity.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cMay the twain meet: Look East as much as West for Indian exports\u201d published in the \u201cmint\u201d on 13th September 2023. Syllabus: GS3- Indian economy Relevance- Issues related to trade News– India\u2019s goods exports printed 14.5% lower for the April-July period, having contracted for the sixth month… Continue reading May the twain meet: Look East as much as West for Indian 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":[216,8184,11125],"class_list":["post-259858","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","tag-mint","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/259858","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=259858"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/259858\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=259858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=259858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=259858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}