India’s exports beat global slowdown to show remarkable growth
New Delhi (Best Hindu News): India continues to showcase a strong and thriving economy amid a global slide in commodity prices and lackluster global demand. Despite the challenges faced by other countries, India’s exports remain strong and resilient, highlighting its competitive edge in the global market.
In April, India’s services exports displayed remarkable growth unaffected by the global slowdown, reaching an impressive $30.36 billion, representing a growth of 26% over the previous year. While Western countries and the US grapple with high wage costs and back-office operations, India is emerging as a logical destination for businesses.
The electronics sector, in particular, stands out as a bright spot, with a significant 26% increase in exports from India. While global trade has declined, India’s imports of machinery and iron and steel grew by 15%, indicating a thriving industry with a healthy appetite for capital goods.
Notably, India’s trade trends reflect its improved competitiveness globally, reflected in a persistent low single-digit trade deficit through 2023. With a goods trade deficit of $15.26 billion and a services surplus of $13.86 billion, the overall deficit is only $1.38 billion.
India’s exports are estimated to reach a new high with a growth rate of 14.68% during FY 2022-2023 as compared to FY 2021-22, amounting to an impressive export of US$ 775.87 billion.
The balanced current account position provides flexibility to policy makers to take independent action on policy rates without worrying about the impact on the rupee. The Reserve Bank of India (RBI) is using the favorable business environment to strengthen the Indian rupee through a deliberate infusion of around Rs 2 lakh crore into the economy, providing the necessary liquidity for growth. Moreover, the strategic approach of the RBI, coupled with the increase in policy rates, has ensured that inflation remains under control.
India stands as an island of optimism amidst the global economic slowdown. The country continues its upward trajectory, driven by a booming domestic industry, growth in services and electronics exports, and strong trade performance, which brings in a number of positive externalities.