Synopsis The Survey adds that at times when the base (global growth and global trade) is not growing, export growth will have to come predominantly through market share gains. iStock Exports will also come under pressure as competition from South Asian countries in a few of its export competitive products heats up. Slowing global demand is weighing on India’s merchandise exports , says the Economic Survey 2022-23. The Survey adds that the empirical literature documents that global growth exerts a strong statistically and economically significant impact on India’s real exports, though the impact has reduced over the years. “Global growth is forecast to slow down in 2022 and 2023 as per IMF estimates. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the Covid-19 pandemic. Thus, the export outlook may remain flat in the coming year if global growth does not pick up in 2023, as indicated by many forecasts,” says the Survey. In such cases, product basket and destination diversification, which India is taking through FTAs, would be useful to enhance trade opportunities. The Survey adds that at times when the base (global growth and global trade) is not growing, export growth will have to come predominantly through market share gains. “In turn, that comes from the focus on efficiency, productivity, technology, and innovation. That game has to be lifted. Governments can try and open markets through FTAs. But, to take advantage of that is in the hands of private sector participants,” says the Survey. Exports will also come under pressure as competition from South Asian countries in a few of its export competitive products heats up. The Survey cites examples of the textile sector, where Bangladesh and Vietnam are seen to be expanding their exports globally, in recent years. Further, Vietnam has been able to expand its exports in machinery and equipment; computers, electronic products, certain agriculture products, etc. “However, given the benefits of the lower average age of the working population along with the advantage of economies of scale, India has the potential to cater to the global demand for several products in a cost-effective manner,” says the Economic Survey 2022-23. India, however, has an innate buffer in its external sector. “India’s export of services, primarily contributed by software, business, and travel services, while remaining robust during the year so far, embodies a greater degree of resilience,” the Survey adds. Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here! Tuesday, 31 Jan, 2023 Experience Your Economic Times Newspaper, The Digital Way! Read Complete Print Edition » Front Page Pure Politics Companies Brands & Companies More Adani Stocks Stay Under Pressure in Choppy Mkt India’s stock indices swung between gains and losses in choppy trading on Monday as Adani shares dropped for the third straight day, following the Hindenburg Research report. Abu Dhabi-Based IHC Commits $400m to Adani Enterprises FPO Additional investments of $1-1. 1b likely from Middle East, Southeast Asia entities. CXOs may Get Average 9. 1% Pay Hike in ’23: Survey India Inc’s top-level executives including chief executives are likely to get a 9. 1% average salary hike in 2023, according to Aon’s latest Executive Rewards Survey. This is a slight drop from average salary increment of 9. 7% last year, when salary hikes saw a correction post-pandemic, but were higher than pre-Covid increment of 8. 1% in 2019. Read More News on Demand vietnam exports IMF fta ETRise MSME Day 2022 Mega Conclave with Industry Leaders. Watch Now . . . . more less ETPrime stories of the day Real Estate Interest rates are rising, so are rental yields. Is it the right time to invest in property? 8 mins read 3 insights to kick-start your day, featuring Swiggy’s “poor judgement” 3 mins read Strategy Stock Radar: Technical charts suggest HDFC Bank is likely to hit fresh record highs in next 3-6 months; time to buy? 3 mins read Subscribe to ETPrime.