BS EDIT: India's wrong inward turn

By Business StandardPublished On Sep 19, 2024

Declining export focus

Manufacturing exports fell from 18% in 2012-13 to below 7% in 2022-23, indicating a shift away from global markets

Impact on trade deficit

India's trade deficit hit a 10-month high of $30 billion in August, partly due to reduced manufacturing exports

Global factors at play

China's slowed demand and excess capacity, especially in steel, have turned India into a net importer, impacting exports

Supply chain disruptions

Instability in West Asia and increased shipping costs have disrupted supply chains, reducing outbound capacity from India

Need for structural change

India must enhance its global competitiveness and integrate into global value chains for sustainable economic growth

The way forward

Focusing solely on domestic demand limits growth. India must look outwards, reducing tariffs, boosting exports, and finding new markets