Total export and import of goods to GDP ratio in India FY 2022-2023.
The import and export sector of a country is a major indicator of health of the countries economy.
If the country imports and exports a lot then there is a chance of having a healthy economy and also the GDP of the country .
The import export data shows that India is a country that trade goods with countries all around the world .
GDP is a unit that is used to measure the goods and service produced by an Economy
If you are someone who is looking for the ratio of India’s GDP to Export and imports of goods then this post is for you .
In this post we will look at Total export and import of goods to GDP ratio in India FY 2022-2023.
But before going into details we will first look at what is GDP
What is GDP ?
Gross Domestic Product (GDP) is a measure of the total market value of all the goods and services produced by a country’s economy during a specified period of time.
It is used as the main measure of output and economic activity throughout the world. GDP is calculated by adding up the following components.
Consumption: Private-consumption expenditures by households and nonprofit organizations.
Investment: Business expenditures by businesses and home purchases by households.
Government Spending: Expenditures on goods and services by the government.
Net Exports: A nation’s exports minus its imports.
What is the total export and import of goods to GDP ratio in India FY 2022-2023.
As per the export data India The total export and import of goods to GDP ratio of India for the year 2022-23 was around 22.45 %
This shows that India is still highly dependent on goods that are imported from other countries .
But things are slowly changing now .
India is now producing goods at a good rate and will grow at 13.84% during FY 2023-23 to achieve USD 770.18 billion worth of exports
Items that are mostly exported from india are petroleum, diamonds, packaged medicaments, jewelryand rice
The top imports are crude petroleum, gold, and coal.
Reason why India has low Ratio
Although India has made great improvement in the import export sector yet India is still dependent on imports the reason are as follows
Weak job creation: The reason for the low GDP ratio is because India is very weak in creating jobs . Many people are still unemployed in India. Which is why there is a lot of competition .
Poor infrastructure:As per the import export data The poor and weak infrastructure of India is not able to meet the needs of a growing economy and population
This also limits corporate growth and investments
Limited domestic production: India’s domestic production capacity is very limited in some sectors which leads to a reliance on imports to meet the demand for goods and services
Decreasing net exports: India’s net exports have fallen, while the country continues to face import dependence
Conclusion
By the end of this post we now know what is total export and import of goods to GDP ratio in India FY 2022-2023. And why India has low GDP ratio .
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