India’s EXIM container trade growth to be in two digits: Maersk
The Dollar Business Bureau
The biggest container shipping company in the world, Maersk Line, said on Wednesday that the growth of EXIM container trade of India in the current year is likely to be in two digits.
“In 2017, the growth is likely to be in two digits provided that India maintains its growth in markets like the Middle East, Latin America and East Africa, enhancing its client portfolio and diversifying the risks,” the company stated in its 2016 Annual India Trade Report.
As per the Global Economic Prospects report by World Bank, growth of global trade in 2016 was the slowest since the world financial crisis in 2009.
“India, in spite of that, has done well and consolidated its place with the international containerised trade. The volume of EXIM container trade has increased by 10% for the entire year of 2016, which was almost double compared to 2015,” Maersksaid in a statement. The growth of trade was more stable across exports as well as imports compared to 2015, where the volumes of import grew four-fold faster compared to exports.
While the demonetisation move by the government in November last year, was likely to disrupt the EXIM trade, the affect was limited to only exports of certain commodities specifically the commodities which were trading it cash. “India’s EXIM trade growth was due to strong surge in exports and a consistent increase in imports owing to a series of economic reforms undertaken by the government, increase in domestic demand and improved performance by key sectors such as textiles, agriculture, pharmaceuticals, and automobiles," said Franck Dedenis, Managing Director – India, Sri Lanka & Bangladesh Cluster, Maersk Line.
Though exports to UK and US remained steady, it was the growth in the demand for Indian products from nations like Kenya and Saudi Arabia that contributed to the overall growth of export of 11%.
Imports recorded an overall growth of 10%, Maersk said, while adding that although China continues to be the largest trading partner that witnessed a growth of 19% year-on-year last year, it was the volume from South Korea that recorded the maximum growth of 41% in imports.