Strong rupee, weak exports hurt GDP growth

Exports, which account for nearly a fifth of the economy, are turning out to be India’s Achilles heel at present. Exports growth has been anaemic in the past two years despite a strong show by Asian rivals such as Vietnam, Bangladesh and the Philippines. However, it would be difficult for the economy to grow faster without a demand boost from global buyers of Indian goods and services. Weak exports would also translate into higher current account deficit and a weaker rupee as imports growth remain strong

Source: World Trade Organisation, UNCTAD, Bloomberg