A substantial chunk of the GDP of India is contributed by exports and related activities. Though Indian economy is no longer seeing red, it’s global trading partners are yet to revive from the blow of recession fully.
Discussing the Indian Economy at the Economic Summit, the finance minister recently reiterated the government’s plan to stick with its strategy of increasing rural demand of goods and services.
The pace at which the global economy is recovering, leaves no room for India to diversify into other markets. The domestic demand has to be fully generated before further diversification can be planned.
North America, Europe and Japan make up for almost 60% of India’s export market. Till the time these economies are staggering, India cannot think of a full recovery. Though there has been a marked improvement in the exports sector since September, there is still much scope for improvement till India can claim to have reached full economic stability.
According to official data, the first half of the fiscal year showed a 28.5% fall in export revenues. However, by September, the revenues had risen up substantially and the fall was reported to be around 13.8%.
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