Expected Growth In Indian Exports, Economy Back On Track

October 31, 2020 daknewsnetwork

Expected growth in Indian exports as the US and Europe economy back on track in the third quarter. With the US and Europe economy back on track in the third quarter of 2020, Indian exports are expected for growth.

The US and Europe account for 34% of Indian exports. In the July-September quarter of the year 2020, the GDP of the US has registered a growth of 33 percent and the GDP of the eurozone has increased by more than 12 percent.

France, Italy and Spain’s GDP linked to the eurozone showed a good recovery in July-September. In the second quarter (April-June) of the year 2020, there was a decline in the GDP of the US and Eurozone.

Exporters said that with the increase in the GDP of the US and Europe, their export orders will definitely increase. The US accounts for about 16 percent of Indian exports.

India exported $ 53 billion to the US in FY 2019-20. Total exports of Indian goods during this period stood at $ 330 billion. The eurozone accounts for about 18 percent of the total exports.

According to data from the Ministry of Commerce and Industry, in August this year, India exported $ 4.25 billion to the US, which is 6 percent less than in August last year.

Exporters said that after the 33% increase in GDP in the third quarter, orders from the US could increase by 15%.

Exporters of Engineering Goods S.C. Ralhan said that Indian exporters received more orders from the US during July-September compared to April-June.

For the coming months also, the export orders from the US are showing an increase as before. Exporters said that due to US tensions with China, export orders could increase further.

Exporters worried about the Corona wave again in Europe

On the other hand, Indian exporters are worried about the Corona infection dominating again in major countries of Europe like France, Spain, Italy, and Britain.

Exporters said that due to Corona, once the lockdown is resumed in major European countries, the buyer can withdraw from the goods or extend the delivery time.

New orders will be closed completely. He says that it takes months to recover the business after the lockdown.