Thursday, April 5, 2018

NATIONAL MARITIME DAY

Great news for India's import and export market

Turnaround in India's 2017 Trade paves the way for a successful 2018 : A.P. Moller - Maersk's Trade report


•             Despite major reforms, India's Export-Import displayed high levels of resilience and outdid some of the World's largest economies, to register 9% y-o-y growth in 2017
•             Indian exports jumped from 1% growth in Q1 to 14% in Q4 registering a strong turnaround
•             East India led export growth at 19% while South India strengthened exports of India-made automobiles to Algeria
•             Slower imports growth of 8% registered over the 12-month period with North India leading the way
•             India's trade growth with North America reached 9%, nearly doubling growth seen in 2016

Other key propellers of India's export growth in 2017 included:
India's exports to UAE registered a strong turnaround, from a 15% decline in 2016 to close at a healthy 11% increase in 2017. This was mainly due to stabilizing oil prices in the region which in turn propelled consumer spending.
•Exports of seeds, beans, cereals and flour to Saudi Arabia went from a 10% decline in 2016 to 39% growth in 2017.
• On the other hand, tile, stone and glass exports, which were leading growth at 99% last year found themselves in the red at -23% in 2017.

India's imports from Europe rose, while metal demand dropped

Growth in India's overall imports slowed to 8% yoy in 2017 with imports from North America and Mediterranean countries declining.

However, it showed a positive increase coming from Europe. This mainly resulted from:

• Vehicle imports from Germany picking up in 2017 to grow by 14% YoY compared to a decline of 16% in 2016


•   Reefer imports picked up pace from 1% YoY growth in 2016 to 7% growth in 2017, where imports from Netherlands itself grew by 31% YoY in Q4 2017 alone

Metal imports for the same period slowed to stand at -11% YoY growth in 2017, from 4% in 2016.

"The decline in metal imports was mainly due to the drop in the demand for solar equipment in 2017," said Felder. "Going back to 2016, the Government's focus on setting up solar cities resulted in a spike in related equipment imports which was sufficient to meet the immediate needs of the industry at that time. As the Government's 'Development of Solar Cities' scheme covering 60 cities moves into the next phase over the coming months, we can once again expect to see an increase in imports in this area."

Other interesting facts related to India's evolving import landscape include:
•             Increasing import of China-made furniture to 30% YoY in 2017
•             Slowing reefer import growth from 81% in 2016 to 3% in 2017
•             Declining imports from Germany and South Korea by 12% and 24% respectively
2018 a promising year
The year gone by presented us with some interesting growth trends driven not only by changes within our boundaries and shifts in the global economy, but also by new export destinations and unexpected commodities taking the lead.

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