16 Feb Rise in export- A boon for India
Posted at 16 Feb 2021 in Current Affairs, Economy, GS Paper III 0 Comments
- In January 2021, India witnessed a surge in export by 6.2%.
Reasons for growth in export:
- As the lockdown is lifted and demand has increased, that led to rise in consumption.
- Growth in export is driven by Pharmaceuticals products and electronics and engineering sectors.
- The U.S. is the top destination for India’s export followed by the U.K.
Schemes launched by government to boost export:
- Remission of Duties or Taxes on Export Product (RoDTEP) – It is launched to incentivise exporters at an estimated cost of Rs 50,000 crore to the exchequer.
- Trade Infrastructure for Export Scheme (TIES) is launched from financial year 2017-18 with the objective to help Central and State Government Agencies for creation of appropriate infrastructure for growth of exports from the States. The Scheme provides monetary support in the form of grant-in-aid to Central/State Government owned agencies for setting up or for up-gradation of export infrastructure as per the guidelines of the Scheme.
- NIRVIC scheme- It provides the highest insurance cover for small exporters to boost export.
- “Exports in January 2021 were $27.45 billion, as compared to $25.85 billion in January 2020, exhibiting a positive growth of 6.16%”
- Import also grew at 2% as per the estimates released by the Ministry of Industry and Commerce.
- Non oil and non gold imports recorded a sharper growth of 7.5%.
- Trade deficit was estimated at $14.54 billion, almost 5% lower than the $15.3 billion recorded in January 2020.
- Export in services is declining from the last few quarters. 6.41% decline in outbound services trade in December 2020 according to the report of RBI.
- The contraction in exports of major products such as petroleum products, leather textiles, gems and jewellery is of prime concern because these products are major constituents of India’s export basket which is also labour intensive.
(Source- The Hindu)