Indian export figures are not as impressive as they may appear
SummaryOur recent surge in trade performance was due to numbers enlarged by worldwide inflation more than a sign of real success
After stagnating at about at level of about $300 billion for almost a decade, India’s merchandise exports increased strongly to an all-time high of $421 billion in 2021-22, rising from 11% of gross domestic product (GDP) each in 2019-20 and 2020-21 to a seven-year high of 13.3% of GDP in 2021-22. This implies an annual growth of 44.7%, the highest ever since independence. Although this export surge in is very impressive, it must be considered in the light of a sharp increase in commodity prices. Therefore, we must understand real export growth before being swayed by nominal numbers.