Currency-value also gets pressurized
NEW DELHI, Sep. 7, 2022 (TBINN)
Reportedly, demand from developed countries and blocs like U.S. and E.U. is impacting exports of key sectors including engineering, gems and jewellery and may have implications on India’s exports in case the global situation does not improve in coming months.
Global inflation, Russia-Ukraine war, simmering China-Taiwan crisis and supply disruptions are hurting economic growth world-wide, leading to poor demand, experts say. The world merchandise trade volume is expected to grow three per cent in 2022 against the earlier forecast of 4.7 per cent, mainly due to the ongoing war between Russia and Ukraine, according to the World Trade Organization’s forecast.
Organisation for Economic Co-operation and Development (O.E.C.D.), a grouping of developed nations, has stated that G-20 merchandise trade growth has slowed markedly in value terms in second quarter of 2022 in April to June period.
Exporters are keeping their fingers crossed over the country’s exports growth and are hopeful that the situation would improve in coming months. Dip in exports and increase in imports widens trade deficit, putting pressure on the value of domestic currency. It also has implications on jobs.