Indian exports have grown steadily in the last three years. And as Commerce and Industry Minister Suresh Prabhu recently said, the country’s export performance has been extremely good at a time when global trade is witnessing headwinds, as countries resort to protectionism. But imports continue to surge.
In FY18, India's exports grew by 9.77 per cent while imports shot up by 21.13 per cent. And that too, on a higher base. The result: Trade deficit has been rising sharply.
This has prompted the government to place import restrictions and raise inbound duties on six separate occasions for hundreds of products including textile inputs, steel, mobile phones and solar panels, among others.