At a time when India’s domestic demand is muted due to persisting covid-induced caution and regional lockdowns, exports are emerging as a surprising silver lining. Although the economy is primarily driven by domestic demand, exports can offset a slump in the home market to some extent. The share of India’s exports destined for the Middle East (West Asia) and Africa has been declining. Travel services and transportation are other key services exports. Small and medium enterprises (SMEs) that contribute roughly 40% to India’s exports are, meanwhile, battling liquidity challenges.

Source: Mint May 30, 2021 15:34 UTC