December 7, 2018
India’s merchandise exports seen growing at 13-14% in 2018-19: PHD Chamber
India’s merchandise trade to GDP ratio increased in the last decade
While appreciating the trade facilitation measures undertaken by the Government during the last many quarters, Mr Rajeev Talwar, President, PHD Chamber of Commerce and Industry said in a press statement issued here today that India’s exports trajectory is getting momentum once again and exports are seen growing at around 13-14% in the current financial year.
Improved global demand and internal factors such as decreased input costs, simpler customs procedures, improvement in the quality infrastructure are the factors facilitating exports, said Mr. Rajeev Talwar.
The major export sectors such as drugs and pharmaceuticals, engineering goods, organic and inorganic chemicals along with the petroleum products are growing significantly, said Mr. Rajeev Talwar. India’s merchandise exports increased to USD 191 billion during April to October 2018 as compared to USD 168 billion in April to October 2017 registering a growth rate of about 14%, said Mr. Rajeev Talwar. Infact, India’s trade openness has remained intact during the post lehman period, said Mr. Rajeev Talwar.
Merchandise trade to GDP ratio has increased during the post-lehman period (2008 to 2017) to 36% from 25% in 2001 to 2007 period, said Mr Rajeev Talwar.
The merchandise exports to GDP ratio has increased to 14% during the post-lehman period (2008 to 2017) from 11% in 2001 to 2007 period, said Mr Rajeev Talwar.
The merchandise imports to GDP ratio has increased to 22% during the post-lehman period (2008 to 2017) from 14% in 2001 to 2007 period, said Mr Talwar.
Trend in export, import and total trade to GDP ratio
Year Export to GDP (%) Import to GDP (%) Total trade to GDP (%)
2001-2007 (average) 11 14 25
2008-2017 (average) 14 22 36
Source: PHD Research Bureau, compiled from Trade Map and IMF. Note: Data pertains to Merchandise export, import and trade.
Indian economy is resilient enough to withstand the external shocks on the back of strong macroeconomic fundamentals and well supported dynamic policy environment, added Mr Rajeev Talwar.
Going ahead, there is a need to focus more on logistics infrastructure to make our exports more competitive in the international market, said Mr. Rajeev Talwar.
Focus on logistics at the states level would go a long way to increase the states’ competitiveness and employment opportunities for growing young population in the respective states, said Mr. Rajeev Talwar.
There is a need to focus more on apparels and textiles, handicrafts, food processing, gems and jewellery, leather and leather products to enhance our export trajectory to the next level, said Mr. Rajeev Talwar. We look forward to continuous pace of reforms in the trade facilitation measure to revitalize and double the country’s exports by 2025 as envisaged by the Government, said Mr. Rajeev Talwar.
Koteshwar Prasad Dobhal