‘Shipments to China driving export recovery’
Asian economies leading uptick: Crisil
The improvement in the country’s export numbers in July was led by a 78% spike in shipments to China and other Asian economies that had successfully contained the pandemic, Crisil said in a report. These destinations constitute 16% of the overall exports basket.
The contraction in exports narrowed to -10.2% in July from -60.2% in April when India was under a strict lockdown due to the COVID-19 pandemic.
Contraction in shipments improved to 50% in May and 30% in June. “While July shipments to China jumped a full 78%, the same to Malaysia jumped 76%, Vietnam (43%) and Singapore (37%). East Asian economies constitute 16% of our export basket,” Crisil said on Friday. “Exports are flowing back to economies that have checked the affliction. That explains why exports to certain economies are looking up, while overall exports are still declining, though at a slower pace,” according to Crisil house economists DharmaKirti Joshi and Pankhuri Tandon.