NEW DELHI: The first mid-year Economic Survey brought cheer for the export sector as it said that green shoots have started to appear in the trade horizon with world trade growth projected at 3.8 per cent and 3.9 per cent in 2017 and 2018, respectively and India’s trade growth also picking up.
"With the green shoots slowly becoming visible in merchandise trade, and robust capital flows, the external position appears robust, reflected inter alia in rising reserves and a strengthening exchange rate," said the Economic Survey Part-2 tabled in Parliament recently.
Reflecting the slowly improving world economic situation, India’s exports turned positive at 12.3% in 2016-17 after an interregnum of two years.
This along with a marginal decline in imports of 1 per cent resulted in narrowing down of trade deficit to $112.4 billion (5 per cent of GDP) in 2016-17 as compared to $130.1 billion (6.2 per cent of GDP) in 2015-16.
In 2016-17, services exports recorded a positive growth of 5.7 per cent with pick up in some major sectors like transportation, business services and financial services; and good growth in travel.