India Beats All G7 Nations In Exports Growth – Free PDF Download

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 1^st 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?

1. Deficit in current account can be met by balance of trade
2. Deficit in balance of trade can be met by current account

1. 1 only
2. 2 only
3. Both 1 & 2
4. None of the above

Latest Burning Issues | Free PDF

Sharing is caring!