New terms of trade

Policy establishment should build capacity

After rising by over 40 per cent in the last fiscal year, India’s merchandise exports growth has moderated. Although the recent moderation is partly because of the imposition of export restrictions to contain domestic inflation, the surge was not expected to sustain as it was significantly driven by global commodity prices. However, the importance of attaining and maintaining higher levels of exports cannot be overestimated. It can be an important driver of growth, which India has been missing for a while. Before the post-pandemic boom, exports remained virtually flat for several years, which affected the overall economic growth. It is