09 MAY,2021 | MEDC
With the impact of Covid waning in much of the western world, India’s merchandise exports are not likely to be majorly impacted over the coming months, despite the second wave of the pandemic sweeping large parts of the country. This is supported by (preliminary) official data showing that merchandise exports nearly trebled in April to $30.21 billion as compared to last year. As long as a complete national lockdown is not imposed, and domestic industry is able to maintain operations, there is every chance of an export pickup. The second wave is yet to peak in India, and until that happens, local manufacturing should be incentivized to the extent possible. Granted, a fair amount of the growth achieved could be due to the low-base effect, but that does not change the fact that there is an increasingly rosy outlook in western markets, which Indian industry needs to capitalize on. Due to muted domestic demand, India’s imports are also likely to fall over the coming two months. That augurs well for our trade balance.
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