False
Download Learnerz IAS app from the Play Store now! Download

$show=search/label/May%202022

 


India’s trade performance UPSC NOTE

 

  • India’s merchandise exports, which shrank over 3% in 2023-24 — a year marred by multiple geopolitical and logistical disruptions to global trade — are off to a positive start this year, but only just. 

  • This April recorded outbound shipments worth $34.99 billion, reflecting a meagre uptick of 1.07% or $370 million from a year ago. 

  • As many as 17 of India’s top 30 export items reported year-on-year contractions, compared with 13 in the previous month. 

  • Significantly, these declines are over a weak base — in April 2023, goods exports had tanked 12.7% and 20 of the top 30 items had reported a fall in export values. 

  • The minor growth last month was largely driven by just four items, pharma, chemicals, electronics and, most importantly, petroleum products, which recovered from a 35% contraction in March, aided by the rise in global oil prices

  • On the flip side, the surge in oil and gold prices through April lifted the country’s goods import bill by 10.25% to over $54 billion

  • As a result, last month’s trade deficit was the highest in four months at $19.1 billion, and nearly 22.5% over March’s gap. 

  • If the OPEC+ club, which meets in early June, decides to extend output cuts, oil prices could well hit $100 a barrel. 

  • Moreover, a persistent global savings rush to gold as a safe haven, could keep pushing India’s favourite yellow metal’s prices higher

  • Apart from the deleterious effects of such a scenario on the domestic front (through higher fuel prices, for one), the trade balance and the rupee would be under pressure.

  • Global trade volumes, after tanking 1.2% in 2023, are expected to rise 2.6% this year, as per the World Trade Organization


Way Forward

  • The government is hopeful that India’s key markets in the western world clock lower inflation and improved growth rates, spurring a demand bounce. 

  • However, India needs to sharpen its approach to capitalise on such a bounce and ensure that any gains that may accrue will create wealth across the domestic economy

  • This requires addressing the challenges facing labour-intensive sectors such as garments and footwear, where the country has been losing out to rivals, including Bangladesh and Vietnam, in recent years. 

  • The downward trend for these sectors, as well as gems and jewellery, continued in April

  • Tackling concerns about product quality (in spices or drugs, for example) or allegations about labour or environmental concerns (aimed at booming shrimp exports) with greater vigour, is also critical.

  • Moreover, agricultural exports, curbed in the battle against inflation, must be reinvigorated soon, given the healthy monsoon prospects. 

  • The next government must roll up its sleeves quickly to rev up the export growth engine and ensure trade balances do not turn unwieldy.

COMMENTS

Name

Amritsar,1,April 2024,301,Art & Culture,1,August 2023,251,Courses,7,Daily Current Affairs,48,December 2023,189,Disaster Management,2,Environment and Ecology,148,February 2024,228,Foundation Course,1,GDP,1,GEMS Club,1,GEMS Plus,1,Geography,154,Govt Schemes,2,GS 2,1,GS1,6,GS2,36,GS3,15,GST,1,History,9,Home,3,IAS Booklist,1,Important News,71,Indian Economy,118,Indian History,2,Indian Polity,135,International Organisation,12,International Relations,97,Invasive Plant,1,January 2024,240,July 2023,281,June 2022,6,June 2023,268,June 2024,173,March 2024,238,May 2022,17,May 2024,330,Mentorship,2,November 2023,169,October 2023,203,Places in News,2,Science & Technology,66,Science and Technology,90,September 2023,205,UPSC CSE,111,
ltr
item
Learnerz IAS | Concept oriented UPSC Classes in Malayalam: India’s trade performance UPSC NOTE
India’s trade performance UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
https://www.learnerz.in/2024/05/indias-trade-performance-upsc-note.html
https://www.learnerz.in/
https://www.learnerz.in/
https://www.learnerz.in/2024/05/indias-trade-performance-upsc-note.html
true
4761292069385420868
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content