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Exports rose 45% in August

GS Paper 3

Topics covered: Indian economy- growth and issues arising from it

 

Context: India’s merchandise exports in August touched $33.14 billion, 45.17% higher than a year ago and 27.5% over the pre-pandemic level of August 2019

More on this news:

  • Despite the increase in export, the trade deficit widened to a four-month high driven by a sharp uptick in gold imports
  • Merchandise imports grew during this time. It grew 51.47% year-on-year to $47 billion, which is also 18% higher than August 2019. This was the primary reason for the widened trade deficit despite an increase in export
  • Gold saw the large increase in import numbers. Gold imports surged to a five-month high of $6.7 billion in August 2021 and were responsible for 88% of the rise in the merchandise trade deficit relative to July 2021.
  • The government has set a target of merchandise exports worth $400 billion for the year and so far as achieved 163 billions of dollar exports

  • Though the global trade is recovering which is helping Indian exporters, attention must be given to resolving increasing freight rates, large container shortages and releasing benefits under various export schemes
  • Growth in export in labour-intensive sector such as textiles and apparel sector has been less than expected (14%) during this period.

 

Insta-curious link

India’s export growth story- Click here

 

Prelims link

  1. What are merchandise exports?
  2. Measures taken in recent times to increase exports
  3. Major items of exports and imports
  4. What is trade deficit?

Mains link

Why has India not been able to increase its share in global export market?

Source: The Hindu