Wednesday, July 1, 2009

India's exports hit by global recession

Exports are a significant factor for the economy of India, 15% of GDP.

Thus the news that India's exports fell in May for the 8th consecutive month is crucial.

Exports in May were down 29.2% from May 2008 and imports 39.2% (valued in India's national currency) and the trade deficit was about 50% that of May 2008.

Which begs the economic, social and philosophical question: Is reduction of countries' trade deficit due to the global recession a "good" or a "bad" thing? Food for thought.

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