Exim Bank Forecasts a Drop in India’s Merchandise Exports
The Export Import Bank (Exim Bank) of India forecasts a drop in the nation’s merchandise exports to $111.7 billion for the months of April to June due to persistent global uncertainty. According to official figures, India’s overall goods exports for the same period last year were $116.7 billion.
A sustained slowdown in important trading partners, particularly advanced economies, stress in the global financial sector, increased inflationary pressures leading to tighter global monetary and financial conditions, and ongoing uncertainty surrounding the Russia-Ukraine conflict may overshadow India’s exports, according to the Exim Bank.
The bank forecasts non-oil exports for the first quarter of the new fiscal year to total $86.6 billion. India’s exports have shown resilience in the face of a difficult global economic environment marked by supply chain disruptions and geopolitical concerns, staying consistently over $100 billion for seven straight quarters since Q2 FY22.
The policy bank, which has its headquarters in the city, has created an internal model known as the Export Leading Index (ELI) as part of its attempts to track and anticipate India’s export movement on a quarterly basis. The ELI, which includes total merchandise exports and non-oil exports, acts as a leading indicator for the growth of the nation’s exports. It takes into account various external and domestic factors that have the potential to impact India’s export performance.
About Exim Bank:
As a provider of export credit and in imitation of other export credit agencies throughout the world, Exim Bank was founded by the Government of India under the Export-Import Bank of India Act, 1981. Through a variety of goods and services, Exim Bank acts as a development engine for businesses and SMEs.
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