In April, India’s exports of products dropped by 12.7% to $34.66 billion, marking the largest decline in three years. Major repercussions for India’s growth story and, consequently, employment creation, result from this ongoing fall. Mint shows how companies could go to address this issue.
What does the decline in GDP growth mean?
Reduced exports of goods might hurt the manufacturing industry and hinder India’s economy at a time when private investments, another important growth driver, have not yet taken off significantly. This might put pressure on the government to look at additional strategies for increasing domestic demand while keeping an eye on the GDP. Many view a downside risk to India’s economy as a decline in developed markets and the ensuing drop in demand. predicted GDP growth rate of 6.5% for FY24, as well as additional concerns including the impact of El Nino on farm output and a spillover of the stress in the US and EU financial sectors.
