The Indian economy picked up pace in the March 2015 quarter. After a 6.6% growth in the quarter ended December 2014, the economy gained momentum posting a 7.5% rise in the March 2015 quarter. This has already put India ahead of China in the race for the fastest growing economy in the world. But doubts still prevail over the reliability of the growth numbers after a new data series has been adopted recently and more so as the growth in industrial production continues to remain in low single-digits.
In fact, even the country's exports are yet to witness a recovery trend. The country's exports fell by 1.2% to $310 bn in FY15. This was largely due to a decline in exports of gems & jewellery and petroleum products.
As per the Associated Chamber of Commerce of India (Assocham), India's exports are likely to remain subdued going ahead. According to the trade body, India's exports are expected to remain flat or even fall below last year's figures in the wake of the continued global slowdown.
Prime Minister Narendra Modi has been very dynamic in forging trade ties with number foreign countries to realize his dream of 'Make in India'. However, it remains to be seen whether the present government will also take concrete steps to improve the business environment in order to make the dream a success and thereby boost the export potential of the country in the coming future.