The week in charts: Exports fall, deposit surge, and the work hour debate

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Subscribe to enjoy similar stories. India’s exports declined for the second consecutive month in December, while the government is likely to undershoot its fiscal deficit aim in 2024-25. The credit-deposit ratio softened in 2024 and the work-hour debate intensified after a new remark by Larsen & Toubro's chairman.

India’s exports continued to see persistent weakness in 2024, with the year ending in the red. Exports contracted 1% year-on-year in December albeit at a slower pace amid geopolitical risks. Exports did see sharp surge in growth in three months in 2024, moderate growth in another three months, while contraction in the rest of the month.

While engineering goods and electronic goods recorded strong growth in December, petroleum and crude products proved to be a drag. Going ahead, a weaker rupee may provide a cushion to exports amid risks of a trade war. Also Read: India’s trade deficit declines to $21.94 bn in December Consumer spending remains weak in both rural and urban areas, with consumer-staple companies collectively reporting less than 5% volume growth, signaling a weak third quarter for the sector.

Underlying the weak consumer sentiment is a sharp rise in household debt in recent years. From ₹77 trillion as of June 2021, household borrowings surged 56% to ₹120 trillion as of March 2024. Even relative to GDP, it increased from 36.6% to 41% of GDP.