THE ECONOMY OF INDIA IS SERIOUSLY HIT DUE TO A WORLDWIDE STAGNANT ECONOMY

 


OVERVIEW OF INDIAN INDUSTRY AND SECTORIAL GROWTH

India is one of those developing nations in the world whose most of the factories and industrial units are run manually or under the assistance of some professional workers. Due to the stagnation of the economy of the world, the sectors which demand high manpower in India are suffering hard. As the Global Trade Data shows a decline in the world, the responsibility to balance this is going to be taken by some of the advanced economies of the world like the United States and majorly the European countries.

Based on the Export Import Data of India, the United States and the EU nations are India’s biggest export partners. If the economies of these two nations would also sink, then India has to suffer losses in its exports. India exports textiles, footwear, and leather items to these nations in abundance. India will never be in the favor of declining economy of the United States or any country from the EU group.

WORLD IS GOING THROUGH AN ECONOMIC SLOWDOWN – REPORT



Based on the report of S&P Global for the month of November 2022, the Global Trade Data or the global growth is going to drop to 2.2% in 2023 which is a sharp decline as compared to 2022 growth which was 3.4%. The Growth of the United States is set to fall by 0.1% whereas no change is observed in the case of EU nations. This decline is here due to the strict monetary policies that are applied to crucial economies manifests.

There is no doubt that if the interest rates are grown on products, the demand for those products would decline as they will become more expensive but at the same time, it will lead to economic and global slowdown as the demand retards in the market which in turn leads to piling of stock and economic slowdown or malfunction.

As per another report published by IMF in January 2023, the economies of advanced countries would also get affected in 2023 and would decline to a certain extent. According to World Trade Organization (WTO) also, the Global Trade Data along with Export Import Data will come down to 1% in 2023 from 3.5% in 2022. This update is indeed a setback for India as the growth rate and cycle of India became well in sync with that of advanced economies which now will get cluttered again. Due to this global slowdown, the demand for Indian-made products will decline in foreign nations. The major shortfall will be from the United States and EU who contributed to 18% and 15.5% respectively in Indian Exports.

Based on the Export Import Data report of India, the largest exports that India do to the EU are:

·        Leather articles (46.2% of total leather articles exports)

·        Footwear (42.7% of total footwear exports)

·        Textiles (28.9% of total textiles exports)

·        Iron and steel (23.9% of total iron and steel exports)

·        Organic chemicals (21.1% of total Organic chemicals exports)

Based on the Import Export Data report of India, the largest exports that India do to the US are:

·        Textile and rags made-ups (47.6% of total made-up exports)

·        Pharmaceutical products (37.7% of total pharmaceutical products exports)

·        Marine products (33.5% of total marine products exports)

·        Textile (27.5% of total textile exports)

·        Organic chemicals (21.1% of total Organic chemicals exports)

As we noticed from the data the contribution of EU nations and the US in leather articles and made-ups respectively is very big and due to the economic slowdown, these two items from India would suffer huge losses and slowdown.

CONCLUSION

Adhish Verma, the senior economist at Crisil released his statement stating that numerous labor-intensive goods like textiles, footwear, and leather items are experiencing headwinds in India. The problem can be aggravated further if the economies of advanced countries also slow down. India should focus on exporting more and more resilient goods from the machinery or the pharma sector in order to maintain the balance of trade.

 

CONTACT US FOR MORE CLARITY ON THE SUBJECT MATTER

If you want further analysis and the best advice about the Import Export Data or the Philippines Trade Data or the Global Trade Data of any country, then get in touch with TradeImeX® Info Solution Pvt Ltd. Being a premier company in this industry, we guarantee you that we only provide the most accurate and correct database to our clients that help them to expand their business and generate huge profits. Our team is striving hard to maintain the level of correctness in our reports which is one of the main USPs of TradeImeX.

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