Are exports holding up?

Strong export volumes have been a major driver of India's growth over the last few years; high technology exports have clearly outperformed medium and low technology exports

Whether India’s exports are holding up is an important question. Goods and services sold abroad, like mobile handsets and IT services, have become an important driver of India’s growth. The recently released gross domestic product (GDP) print for June 2022 made that all too clear. The economy has grown just 4 per cent since June 2019, while exports have surged by a staggering 20 per cent over the same period.

The rise in exports also explains the improvement in India’s current account balance between FY19 and FY22. In fact, the improvement in India’s external accounts over those years helped raise buffers,