Data recap: Decline in exports, ASER survey
3 min read . Updated: 20 Jan 2023, 11:15 AM IST
Premium- Exports fell severely in Dec 2022; Microsoft announces layoffs; and a survey revealed learning took a hit during the pandemic.
New Delhi: Every Friday, Plain Facts publishes a compilation of data-based insights, complete with easy-to-read charts, to help you delve deeper into the stories reported by Mint in the week gone by. Trade data released recently showed that India’s exports had fallen severely in December 2022. Microsoft has become the latest US tech firm to announce layoffs. A major education survey found that learning had taken a hit during the pandemic.
Exports Misery
India’s merchandise exports has seen a decline of 12% year-on-year in December 2022 with demand from major markets such as the US and the European Union continuing to slow down. This was the second decline in three months. The country’s imports also saw a decrease by 7%, which was only the second time they fell in more than two years. The trade deficit widened marginally to $23.7 billion, up from $23.4 billion in November 2022.
Learning Decline
The annual Status of Education Report was released on Wednesday, throwing light on the negative impact of lengthy school closures during the pandemic on the learning levels of school-age children. Nearly 43% of class V students tested by the rural survey conducted by ASER could read a class II level text, down from 47% in 2012. Bihar, Jharkhand and Manipur were among the few outliers that did better on class V students’ basic reading ability.
Big Billions
₹951 crore: That’s the amount Viacom18 will pay for media rights for the upcoming Women’s Indian Premier League (WIPL) over five years till 2027. The Reliance Industries Ltd-controlled broadcaster—which outbid its sole competitor, Disney Star—will effectively pay a per-match fee of ₹7. crore for the media rights. The Indian cricket board will auction five teams for the WIPL on 25 January. The inaugural season is likely to begin in early March.
Reality Check
The Reserve Bank of India (RBI) has identified six states set to be the worst affected by the termination of GST compensation payouts from the Centre. Puducherry, Punjab, Delhi, Himachal Pradesh, Goa and Uttarakhand are at risk because GST compensation, on average, exceeded 10% of their tax revenue before the programme ended in June 2022, an RBI report said. The report suggested that these states augment their revenue by improving their own tax collections.
Price Pressures
The drop in India’s retail inflation to 5.72% in December was once again mainly due to a sharp decline in vegetable prices. Fewer items in the retail inflation basket exceeded the 6% mark than in November, but their combined weight in the basket remained high at 56%, show Mint calculations. This means that even though overall inflation is cooling, important items still fall on the higher side of the central bank’s upper tolerance limit of 6%.
More Layoffs
10,000: That’s the number of workers Microsoft plans to lay off, the tech company said, attributing the decision to “macroeconomic conditions and changing customer priorities". This comprises almost 5% of its workforce. The headwinds the US’ tech sector is facing amid a slowing economy have led to thousands of layoffs already as companies, including Meta and Amazon, try to cut costs after years-long hiring sprees.
On Wheels
The automobile sector, which was bogged down for months by the semiconductor shortage last year, is slowly coming out of the woods. With overall vehicle sales topping 4.5 million in 2022, India became the world’s third-largest automotive market, beating Japan, Nikkei Asia reported earlier this month. However, per capita ownership of cars is low, and cars in India are much cheaper, which means the market value isn’t comparable with other giants, Mint calculations showed.
Chart of the Week: India v China
Comparisons between China and India on their economic growth journeys are inevitable. China’s great strength, and India’s weakness over the past 15 years or so, has been capital formation. While the share of investment in India’s GDP surged from between 2004 and 2012, it has since declined.
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