Taps Coogan – August 5th, 2021

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The following chart, via Sergi Lanau, largely speaks for itself. India’s exports are up nearly 50% from the start of the year.

Contrary to what many assume, India runs a modest current account and trade deficit, primarily driven by a large trade deficit with neighboring China. Nonetheless, its deficit has been roughly halved this year as India’s imports remain high, but its exports surge.

Much of the growth in Indian exports are from agriculture, where prices have rocketed higher, but India is also muscling into China’s turf by manufacturing consumer electronics for major brands like Samsung and Apple. Equivalent wages in India are about six times lower than in China.

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