India needs to diversify into high-demand export products

On May 15th, Santosh Kumar Sarangi, the Director General of Foreign Trade (DGFT) of India, suggested that Indian exporters diversify into products with higher export demand

- Kishore Kumar Biswas

He made this recommendation while addressing the media in New Delhi during the release of trade data for April 2023. The data revealed a 12.7% contraction in exports, reaching a 20-month low in the trade gap (the difference between export and import values). In April, the value of exports declined to $34.66 billion, while the trade deficit decreased to $15.24 billion.

When asked about the poor export performance in April and the timeline for recovery, Sarangi reportedly stated, "The demand scenario is not looking promising, particularly in Europe and the US where we have observed a decline in demand. I do not anticipate an optimistic demand scenario for the next 2-3 months." However, he remained optimistic about the future, stating that things would change from September onwards. Sarangi reportedly said, "There is a possibility that the opening up of the Chinese economy, combined with a boost in demand from Europe and the US economies from August-September onwards, might enhance global exports."

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