Table of Contents
What has happened?
- The Centre, on Wednesday, informed that the country’s exports are growing at a faster rate compared to earlier.
- Taking to the official Twitter handle of MyGov, the Centre stated that India has now beaten all G7 nations to report the highest growth in merchandise exports.
- According to the data released by the World Trade Organization, India led the G7 nation in terms of growth in merchandise exports which stands at 47% year-on-year in the January – July quarter.
- As per the data shared by the Centre, India led the chart by a long way noting 47% growth while Italy came second posting 33% and Canada came third with 32% growth.
- The top three nations were followed by France, Germany and Japan with 27, 26 and 25% respectively.
Among all major economies
- The WTO data also showed that the 47% growth rate shown by India is the country’s all-time high in exports.
- As for the January – July (2020 & 2021) period, India stood first among the major world economies in terms of growth rate in exports.
- The country is followed by China with 34% and the European Union with 27%.
Why it’s a big deal to beat G7- Group of seven?
- G7 is a collective of seven of the world’s most industrialized and developed economies.
- G7 was formed initially to discuss economic and political concerns prompted by the 1973 oil crisis.
- Its 1st summit was held at Rambouillet, France, in 1975.
- Leading export countries
- Largest gold reserves
- Largest nuclear energy producers
- Top contributors to the UN budget
- India’s export growth prospects are likely to get a boost from the World Trade Organization’s (WTO) latest report that now sees a brighter global merchandise trade outlook for 2021 compared to its earlier projections.
- India’s exports to its top trading partners such as the US, European Union, nations in West Asia, among others, are expected to rise.
- Exports data during the first six months of the current fiscal year is emblematic of the fact that external demand has been robust.
- Exports from India have been rising consistently over the last few quarters, after plummeting for a few months as the outbreak of Covid-19 disrupted global trade.
Substitute for China
- Experts said with rising global demand, India should be able to compete in various segments vis-a-vis China.
- “Currently, China is facing supply-side as well as demand-side issues owing to several internal challenges (energy, debt crisis).
- Therefore, India is in a good position to increase its exports, and can become a substitute for China across various product categories or sectors.”
Rising global demand
- India can take advantage of the increasing global demand, which can ultimately translate into demand for Indian exports, he said.
- According to a WTO report released on Monday, global goods trade is expected to grow by 10.8 per cent compared to the forecast of 8 per cent in March, but with varied recovery, depending on the region.
Q) Which among the following statement is correct?
- Deficit in current account can be met by balance of trade
- Deficit in balance of trade can be met by current account
- 1 only
- 2 only
- Both 1 & 2
- None of the above
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