Export Data- the Importance of data

Export data is the record keeping of the goods one country has sold to another in exchange of a commonly accepted currency. Often this commonly accepted currency is the US Dollar or Euro. The main importance of Export Data is to measure the BOT or Balance of Trade of India. 

Balance Of Trade:

Balance of trade can be broadly be defined as the difference between
the import and export quantities (against a pre set currency). The balance of trade can either be positive or Negative. 

Positive Balance of Trade:

In case the balance of trade is positive, it tells us that the export income of the country outweigh the import expenses. In case of India the balance of trade has never been positive since the liberalization of the 1990’s. But if current trends of disinvestment are followed the trade deficit of the country could turn into a trade surplus which should be (theoretically) be followed by the balance of trade.

In case the balance of trade is negative, it tells us that the countries expense on Imports out weight the income from the exports. Currently India is facing a negative balance of trade. In addition to this the trade deficit of India has grown on the back of robust domestic demand of Industrial and household goods.

A detailed analysis of the export data tells us that the future is not all bleak for the Indian export scenario. With rapid growth in the service sector, which is now being exported abroad it will note belong before the trade deficit gap closes.