- India’s exports hold a promising outlook with the U.S. economy growing at its best in four years, coupled with the rupee depreciation leading to enhanced net revenue realisations, according to a report by Assocham.
- The U.S. emerged as the top export destination for India, with $47.9 billion worth of shipments in the last fiscal ended March, followed by the UAE and Hong Kong.
- The U.S. economic growth accelerated by 4.2% in the second quarter of this year, its fastest pace in about four years despite the ongoing tariff war with China.
- The U.S. accounted for about 16% of India’s total merchandise exports of $303 billion in the fiscal 2017-18 with the annual growth of 13.42%.
- It is the largest market for Indian exports, both for merchandise and services.
- So, when the U.S. grows at its current pace, it augurs very well for the total Indian exports’ basket, it added.
- A sharp drop in rupee may have caused a burden on the country’s import bill, but the net realisations for exporters have increased significantly.
- According to the trade data for August 2018, while exports have shown a growth of about 19% in dollar terms, the rupee realisations for the export shipments went up close to 30%.
- With further streamlining of exporters’ GST refunds, their competitiveness should also improve, helping them in the global market.
Home Current Affairs Economics U.S. economic growth, rupee fall will boost Indian exports, says Assocham