• 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.

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