Budget Byte: Export needs budgetary support for overall economic growth

Exports fall stronger than the economy as a whole, share in GDP dips

India’s exports are losing their share in gross domestic product (GDP). And for a considerable period, low oil prices were a key reason for this. But it also means that non-oil exports slogged during that phase. Into the pandemic, exports improved in Q2, but may not have risen greatly in Q3, assuming no change in quarterly GDP from last year’s level. 


 

India’s exports fell fastest among emerging nations, need strong Budget boost

This performance, the IMF estimates, could be the worst among select emerging economies in 2020. For a well-rounded economic recovery, exports are crucial, but are limited by a new wave of Covid-19 that is affecting global demand. Strategic incentives through the Budget may help boost exports.