SME Times News Bureau | 22 Feb, 2018
The RBI Wednesday said global trade has continued to expand, and
it is expected and this should help the country's export sector.
Export growth is expected to improve further on account of
improving global demand, said minutes of the February central bank
But it raised concern over elevated commodity prices, especially
of oil, which may act as a drag on aggregate demand.
Considering exports prospects and other factors including GST
implementation, revival in investment demand and recapitalisation of
public sector banks, GVA growth for 2018-19 is projected at 7.2 per
cent overall – in the range of 7.3-7.4 per cent in H1 and 7.1-7.2
per cent in H2 – with risks evenly balanced, it added.
It points out that merchandise exports bounced back in November
"While petroleum products, engineering goods and chemicals
accounted for three-fourths of this growth, exports of readymade
garments contracted," it said.
With import growth exceeding export growth, the trade deficit for
December was US$ 14.9 billion, it added.