Hindi English Translation || Editorial || Trade trapeze: On India’s exports

Trade trapeze: On India’s exports

The rebound in goods exports needs nurturing (पोषण करना) to plug the widening (चौड़ा करना) gap with imports

After a rough 2023-24, when India’s merchandise exports tanked 3.1% to around $437 billion, trade tides appear to be turning. The last two months have recorded an expansion in outbound shipments with the momentum (गति) picking up from a 1.1% rise in April to a 9.1% uptick in May. Some of this reversal had begun in the January to March quarter, when exports grew 4.9% to a seven-quarter high of over $120 billion, belying worries about the disruptions (अवरोध, व्यवधान) in the Red Sea route since late 2023. Imports as well as exports have risen in four of the last five months now. With the European Central Bank slashing interest rates this month after a long hawkish stance post-COVID-19, exporters and trade officials are hopeful that its peers in key markets would follow suit and help shore up demand for their produce. But with prices of some industrial commodities such as metals as well as food items rising in recent months, those hopes need to be tempered. The U.S. Federal Reserve has scaled back expectations, stating that only one rate cut is likely through this calendar year.

It is heartening that 20 of India’s top 30 export items have outperformed last May’s export tallies this year, compared with just 13 items recording a rise in April. The sectors that recovered in May include employment-intensive ones such as apparel, man-made yarn, and engineering goods. Worryingly, spice shipments slipped by a sharp 20.3%, while marine products tanked again. Spices and shrimp exports were likely hit by some negative reports in key markets about quality and workplace standards, respectively, and more must be done to counter what has been termed a misplaced (गुम करना, गलत जगह पर रखना) narrative. On the other hand, May’s import bill hit a seven-month high of $61.9 billion, widening the trade deficit (घाटा, कमी) to $23.8 billion, 25% over April’s gap. A record $13.2 billion deficit in petroleum products fuelled this gap, with imports worth $20 billion mostly linked to April’s average oil price of $89 a barrel. Oil prices have eased since then, but warrant close monitoring in an import-dependent country. Officials have downplayed concerns about rising deficits, arguing that import demand will outstrip demand for India’s exports, as it is growing faster than the world. Moreover, rising services exports and forex inflows from global investments shall help offset the gap, along with import substitution (प्रतिस्थापन) efforts. The latter assumption could prove tricky — foreign direct investment inflows have declined for three years, earnings guidance from IT services’ majors has been far from optimistic, and private investments to substitute imports remain sluggish. Rather than banking on intangibles (अमूर्त, अभौतिक) and imponderables (अज्ञेय, अविचारणीय), the Centre must revitalise (पुनर्जीवित करना) its schemes and efforts to prop up goods exports, with enhanced budgetary outlays to boot.

Courtesy: The Hindu

Important Word List With Meaning

1.Widen (Verb)

Hindi Meaning - चौड़ा करना
English Meaning - To make or become wider.

2.Nurture (Verb)

Hindi Meaning - पोषण करना
English Meaning - To care for and encourage the growth or development of.

3.Momentum (Noun)

Hindi Meaning - गति
English Meaning - The force or speed with which something moves.

4.Disruption (Noun)

Hindi Meaning - अवरोध, व्यवधान
English Meaning - Disturbance or problems that interrupt an event, activity, or process.

5.Misplace (Verb)

Hindi Meaning - गुम करना, गलत जगह पर रखना
English Meaning - To put in the wrong place and lose temporarily

6.Deficit (Noun)

Hindi Meaning - घाटा, कमी
English Meaning - The amount by which something, especially a sum of money, is too small.

7.Substitution (Noun)

Hindi Meaning - प्रतिस्थापन
English Meaning - The action of replacing someone or something with another person or thing.

8.Imponderable (Noun)

Hindi Meaning - अज्ञेय, अविचारणीय
English Meaning - Factors or elements that cannot be precisely determined or measured.

9.Intangible (Adjective)

Hindi Meaning - अमूर्त, अभौतिक
English Meaning - Unable to be touched or grasped; not having physical presence

10.Revitalise (Verb)

Hindi Meaning - पुनर्जीवित करना
English Meaning - To give new life or vigor to.