The trade deficit and protectionist tendencies of India are rising swiftly. According to the Economic Survey, the global front are areas to watch for in the short term.
Many trade restrictive measures add to a situation that is of growing concern. Few trade restrictive measures are several types of non-tariff barriers (NTBs), restrictions on visas and risk of backlash against movement of persons.
Share in global exports of India has stagnated at 1.7 per cent from 2011 to 2016. With intermittent falls to 1.6 per cent, there is an urge for a well thought out strategy for the country to reach up to 5 percent, which is a respectable share.
India’s trade deficit increased by 108.2 per cent in the April-June period 2017-18. The trade deficit has increased with the high import growth. However, the export growth was moderate.
In the parliament, the second part of the Economic Survey was also brought in limelight. It says that trade deficit registered continuous decline since 2014-15 reaching a level of USD 108 billion in 2016-17. From 2004-05, the trade deficit had progressively gone up and reached the highest level of USD 190.3 billion in the year 2012-13.
The survey has also proven a fact that in 2017 and 2018, some green shoots have started to appear on the trade horizon with world trade growth projected at 3.8 per cent and 3.9 per cent. In May 2017, the exports of India have continued to be in positive territory for the fourth consecutive month. In April-May 2017, the export was in double digits.
Things to watch in the short term are rising trade deficits on the domestic front and rising protectionist tendencies on the global front.
In recent years, it refers the rising of anti-globalization. As per the survey, tendencies have planed with the growth in the US during and after the elections as well as the Brexit referendum.
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