Login With Google
U.S. growth, rupee fall will boost Indian exports : Assocham
Why in the news ?
- According to a report by Assocham, India’s exports hold a promising outlook with the U.S. economy growing coupled with the rupee depreciation leading to enhanced net revenue realisations.
More in the news
- The U.S. emerged as the top export destination for India, with $47.9 billion worth of shipments in the last fiscal 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.
- As per the report, 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.
- Engineering goods, chemicals, gems and jewellery are among the major items of exports to the US from India.
Rupee factor
- 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.
- 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.
Source
The Hindu