Export Sectors Slowdown

Subdued demand from developed countries and blocs like the US and EU is impacting exports of key sectors including engineering, gems and jewellery and may have implications on India's exports in case the global situation does not improve in coming months. Global inflation, Russia-Ukraine war, simmering China-Taiwan crisis and supply disruptions are hurting economic growth worldwide, leading to poor demand, experts say. The world merchandise trade volume is expected to grow 3 per cent in 2022 against the earlier forecast of 4.7 per cent, mainly due to the ongoing war between Russia and Ukraine, according to the World Trade Organization forecast, released in April. Organisation for Economic Cooperation and Development (OECD), a grouping of developed nations, has stated that G-20 merchandise trade growth has slowed markedly in value terms in second quarter of 2022 (April-June). Exporters are keeping their fingers crossed over the country's exports growth and are hopeful that the ...

Key export sectors such as leather, gems and jewellery, ready-made garments, and petroleum posted negative growth

The current account deficit is likely to decline substantially to $10-11 billion in the second quarter

Successive economic surveys have stressed on the need for policy reforms in these sectors