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Non-US exports have been hit hard
Dec 7, 2015

India's exports have been on a major slide. The reasons are varied. Demand slowdown in the developed world and China, lack of competitiveness, increasing competition from other developing countries, an over-valued currency, lack of domestic reforms are all to blame. While there is no magic solution, a good place to start would be to get a holistic pictureof the slowdown.

As per an article in Livemint, India's export slowdown is worse than it seems. As today's chart shows, the major decline is not exports to the US. Rather Asian countries are not so gung ho about India. Asia accounts for nearly half of India's exports and the fall has been quite sharp in the first six months of FY16.

While fall in US exports was just 5% YoY, exports to Asia was down 18.6% YoY in 1HFY16. This clearly highlights the magnitude of the problem. Depending on a broad based economic recovery in the developed world would be futile in our opinion. India has long and difficult path ahead in the quest to become an export powerhouse.

Data Source: Livemint; Commerce Ministry; IMF; Crisil

This Chart Of The Day was published in The 5 Minute WrapUp - Is 'Growth Investing' Stalling Your Portfolio Returns?

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