India’s Export Growth: Key takeaways

Exports have done exceptionally well.

Few key takeaways from India’s export performance over the years

1) India’s post-pandemic merchandise exports surge has largely been driven by items with greater responsiveness to global growth. Incidentally, these also have a high share in India’s exports basket

2) compared with the pre-pandemic levels, growth in merchandise export value in the current fiscal has outpaced growth in export volumes, which suggests that high international commodity prices have provided a disproportionate lift to exports

3) Despite higher commodity prices, the terms of trade, or ToT (the ratio of export to import prices) remained in favour of exporters since the pandemic struck

4) India’s exports will benefit from a rise in external demand in the short run owing to their historically high responsiveness to global growth. But risks to global trade persist from supply-chain disruptions and material shortages, medium-term scarring of global potential output

Source: Economist D K Joshi