How Indian Exports Continue To Surge Amidst Second Massive Corona Wave
Last updated on April 27th, 2021 at 04:24 am
Despite the increasing number of Covid-19 cases in the country, the export numbers are looking promising for India. Confirmed reports are coming in that the global climate is much more promising.
The trading environment is good as developed countries are ramping up their vaccination drives, reporting lesser numbers of infections and trade is catching up.
There were possible chances of economical disruptions but the overall export picture is looking promising, something which might help India sail through the second massive Covid-19 wave. India is not looking at total lockdown and the Centre is trying its best that it does not come to that.
The United States is in the cusp of a booming economy and China has already posted a robust economic recovery. Most countries in East Asia and West Europe have shown strong economic recovery.
It is good news that most Indian exporters are still flushed with orders. The bigger question is whether we can keep pace with the demand but supplying in time. Also, what is heartwarming is the fact that globally, the demand for consumer goods, intermediates and commodities is seeing a fast paced growth. This is evident from the rise in prices.
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While freight rates have gone up across the board, there is a mismatch in demand and supply. There is an evident shortage of transportation services and container shortages. Reports are coming in that exporters are planning better to ensure they can keep up the pace. Most have managed to renegotiate with buyers and get better prices that take into consideration the higher logistics costs.
However, the exporters of low-value items find that buyers abroad increasingly prefer geographically closer alternative sources at higher prices and lower transportation costs.
On its part, the government has taken some concrete steps to ensure that the exporters can continue to function without disruption. Some major factors that have improved productivity is due to increase adoption of information technology, lower interest rates, easier availability of credit and various cost-cutting initiatives that have helped exporters.
