|
India should leverage evolving global trade dynamics, such as greater protectionism, to accelerate its growth and enhance its presence in global trade, said the Economic Survey 2025, tabled in the parliament on Friday.
The survey added that the proactive approach will help India continue to thrive in an ever-changing global market. "The evolving global trade dynamics, marked by gradual shifts towards greater protectionism, require assessing the situation and developing a forward-looking strategic trade roadmap," the Economic Survey highlighted. "By adapting to these trends and leveraging its strengths, India can accelerate its growth and enhance its presence in global trade. To strengthen its competitiveness and further integrate into global supply chains, the country can focus on reducing trade-related costs and enhancing export facilitation to create a more vibrant export sector," the survey added. Going further, the survey added that India's foreign exchange, which stood at USD 640.3 billion as of the end of December 2024, is sufficient to cover approximately 90 percent of the country's external debt of USD 711.8 billion as of September 2024. The survey said that the country's external sector continued to display resilience amidst global headwinds of economic and trade policy uncertainties. Total exports (merchandise and services) have registered a steady growth in the first nine months of FY25, reaching USD 602.6 billion (6 per cent). Growth in services and goods exports, excluding petroleum and gems and jewellery, was 10.4 per cent. Total imports during the same period reached USD 682.2 billion, registering a growth of 6.9 per cent on the back of steady domestic demand. On the capital front, foreign portfolio investments (FPIs) have shown a mixed trend in FY25 so far. Uncertainty in the global markets and profit-taking by foreign portfolio investors led to capital outflows. However, strong macroeconomic fundamentals, a favourable business environment, and high economic growth have kept FPI flows positive overall. Gross foreign direct investment (FDI) inflows have shown signs of revival in the first eight months of FY25, though net FDI inflows declined relative to April-November 2023 due to a rise in repatriation/disinvestment, said the Economic Survey. The Economic Survey provides the roadmap for the reforms and growth of the Indian economy. The Economic Survey is written by top officials under the supervision of Chief Economic Advisor V. Anantha Nageswaran. (ANI)
|
