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India under rapid recovery: Exports have taken off as the economy shakes off the COVID-effect

Well done, Piyush Goyal

TFI Desk by TFI Desk
2 October 2020
in Economy
Piyush Goyal, Exports, Economy

(PC: PTI)

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Amid the Coronavirus pandemic, when the countries around the world have registered a significant decline in the export figures, India has come out of the losing streak to register 5.27 per cent growth in exports. The country exported goods and services worth 27.4 billion dollars in September this year which is 5.27 per cent more, compared to last year, said Minister of Commerce and Industry, Piyush Goyal.

The exports are an indicator of “rapid recovery” of the Indian economy across parameters. “Make in India, Make for the World: Indian merchandise exports grew 5.27 per cent on September 20 as compared to last year,” said  Mr Goyal in a tweet.

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The export numbers reflect the opening of the economies around the world and pick up in demand, said Trade Promotion Council of India (TPCI) Chairman Mohit Singla. “Food and Agri sector will continue to thrust exports as they have done in even the worst of times in the past,” Piyush Goyal added.

As the government lifts one restriction after another on economic activities, the economy has started to pick up, and the demand is going back to pre-COVID times. The unlocking of the economy is being done in a phased manner, and this has led to an increase in the demand for various goods and services. In fact, the pent-up demand has also come in September in the sector like Automobiles where the companies witnessed a 30-40 per cent jump in sales in the last month and 10-20 per cent for the last quarter.

“With total sales of 3,93,130 units in Q2, the company registered a growth of 16.2% over the same period the previous year, on a lower base,” Maruti Suzuki said in a statement. Hyundai also witnessed a jump of 23 per cent in sales in September. Two-wheeler manufacturers are also operating on full capacity due to the rise in rural demand.

Manufacturing Purchasing Manager Index, which has been diving into negative territory for the last six months, reached 8 years high to above 56 in September. GST collection, a reflection of demand of taxed goods in the economy, registered a rise of 4 per cent in September.

So, as the country opens up, the economy is picking up across the board and the pent-up demand is also being reflected from the latest purchase. Many consumers who saved money during the lockdown on various expenditures are now spending money on big-ticket purchases, and this will lead to a good performance of the economy in the next quarter.

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