Page 53 - DHC Budget Book 2021-22 Final

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-25 World
2016 Source: WTO
Advanced EMDEs Economies
2017 2018 2019
SE Asia 2020 (Upto Q3)
India
30 20 10
0 -10
-20 -30 -40
World 2016
EMDEs 2017 2018 2019
SE Asia
2020 (Upto Q3)
Advanced Economies
India
Figure 7:Trends in World Merchandise Trade
In India, calibrated easing of lockdown restrictions narrowed contraction in both exports and imports with imports posting faster recovery leading to progressive expansion of merchandise trade deficit over the quarters of the current year. Notable improvement witnessed in Trade balance with China and the US owing to import restrictions Global merchandise trade is expected to contract by 9.2 per cent in 2020. Trade. Overall, India is expected to witness current account surplus during the current financial year after a long gap of 17 years.
The foreign exchange reserves rose to an all-time high of US$ 586.1 billion as on January 8, 2021. Balance on the capital account, was bolstered by robust FDI and FPI inflows. High
levels of headline inflation, however, postulates the classical dilemma before RBI to maintain a fine balance between tightening of monetary policy
to control inflation on the one hand and stimulate growth on the other hand.
Way forward, improving trends in India’s merchandise trade have been supplemented by equity capital inflows, robust FDI inflows and sustained build-up of foreign exchange reserves. The comfortable foreign exchange reserves
give the much-needed space for enhanced domestic investments. The disruption of global manufacturing value chains due to the COVID-19 pandemic presents a tremendous opportunity
for India to become one of the key nodes in the chain, especially the pharmacy leader of the world.
Various initiatives undertaken to promote exports, including Production Linked Incentive (PLI) Scheme, Remission of Duties and Taxes on Exported Products (RoDTEP), improvement in logistics infrastructure and digital initiatives would go a long way in strengthening external sector in general and exports in particular.
Sustainable Development and Climate Change
India has historically focused on moving forward on the path of implementation of ‘Sustainable Development Goals’ (SDG) through well-designed initiatives for inclusive development which is enshrined in its policies. The eye-opening pandemic and the iniquitous impact of the consequent lockdown reemphasizes the fact that sustainable development is the only way forward. The 2030 agenda for Sustainable Development with 17 Sustainable Development Goals (SDGs) and 169 associated targets encompasses a comprehensive developmental agenda integrating social, economic and environmental dimensions.
India has been taking several proactive climate actions to fulfill its obligations as per the principles of common but differentiated responsibilities and respective capabilities and equity. As mandated in the UNFCCC and its Paris Agreement, the climate actions of the developing countries would have to be supported by finance flows from the developed to the developing countries. To ensure the use of cleaner automobile fuel, India has also leapfrogged from BS-IV to BS-VI emission norms on 1st April
Content
Economic Survey 2020-21 Basic 51
Growth rate (Y-o-Y), Per cent
Growth rate (Y-o-Y), Per cent