India’s rising trade deficit and protectionist tendencies on the global front are areas to watch for in the short term, according to the Economic Survey released on Friday.
Many trade restrictive measures, including several types of non-tariff barriers (NTBs), restrictions on visas and risk of backlash against movement of persons add to a situation that is of growing concern, it said.
Stating that India’s share in global exports has stagnated at 1.7 per cent from 2011 to 2016 with intermittent falls to 1.6 per cent, the survey said there is a need for a well thought out strategy for the country to reach a “respectable share of at least 5 per cent”.
In the April-June period 2017-18, India’s trade deficit increased by 108.2 per cent with high import growth while export growth was moderate, it said.