23/09/2021 - Indian Economy

KEY POINTS

·        Over the past few months, there has been a high degree of optimism regarding India’s export prospects,

·        There are good reasons for optimism; exports have exceeded $163 billion, which is nearly 23% higher than the level achieved in the corresponding period in 2019-20.

·        India’s exports surged on the back of consistent recovery of the global economy, especially in the country’s main export destinations.

·        India’s exporters must override these uncertainties to maintain the exceptional growth in exports recorded in the first half of 2021.

·        The government has lent a helping hand to exporters by notifying the new export promotion scheme, the Remission of Duties and Taxes on Exported Products (RoDTEP).

·        Efficiencies of trade-related infrastructure in India continue to be relatively low, notwithstanding the improvements over the past decade.

·        Consider, for example, the turnaround time of ships in ports, which is an indicator of how efficiently ports can handle cargoes.

·        In 2020, the average turnaround time for Indian ports was 2.62 days, while the global average in 2019 was 0.97 days.

·        Thus, bridging the gap in port efficiencies can make considerable dent in the cost of doing business, thereby lending competitive edge to India’s exports.

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