India is better placed in the
diversification of export destinations as concentration of exports to its top
ten export destinations is 51% as compared to top ten leading export countries
of World Hong Kong (81%), Japan (70%), Netherlands (68%), Republic of Korea
(67%), UK (65%), USA (63%), Germany (60%), China (59%), France (59%) and Italy
(57%), said an analysis conducted by PHD research Bureau of PHD Chamber of
Commerce and Industry.
More the percentage is that country
is highly exporting to few destinations and lesser the percentage is country is
more diversified to a large number of export destinations.
Notwithstanding the excellent diversification
of export markets, cost of credit, volatile exchange rate, poor logistics and
export infrastructure impede competitiveness and increase in export volumes,
said Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry
The top 10 exporting economies across
the world are China, USA, Germany, Japan, France, Republic of Korea, Hong Kong,
Netherlands, UK and Italy.
The share of the top ten leading
exporters in total world exports is estimated at around 55% of China contributes
highest at 14% followed by USA (9,2%), Germany (8.2%), Japan (3.8%), France
(3.5%), Republic of Korea (3.2%), Hong Kong (3.1%), Netherlands (2.9%)and Italy
(2.8%), said the analysis conducted by Research Bureau of PHD Chamber.
However, all the leading export
countries posted a negative growth in 2015 except France.
Export growth was negative in
Netherlands (-17%), Italy (-13%), Germany (-11%), UK (-9%), Republic of Korea
(-8%), USA (-7%), Hong Kong (-5%), China (-3%) and positive in France at (1%).
However, India stands 19th in the list of exporters (worldwide) with merchandise exports valued at
US $264.38 billion. India’s share in World exports is estimated at 1.6% in the
year 2015.
Going ahead, there is lot of
potential for India to enhance its exports as 7 out of the top 10 export
destinations of India such as USA, UAE, Hong Kong, China, UK, Singapore and
Germany are also among the top ten export destinations of leading World
exporters.
As these destinations are already in
focus of our exporters, the need of the hour is to enhance our competitiveness
to increase our volumes of exports, said Dr. Mahesh Gupta.
Cost of credit is crucial to export
competitiveness; the interest rate environment needs to be rationalized to
increase the competitiveness of our exporters, he said
As MSME sector contributes around 40%
in our exports, easy access to finance for the MSMEs sector is critical to
revive the exports growth trajectory, to develop the strong manufacturing base
and job creation.
However, the MSMEs sector is finding
very difficult to survive and attract fresh investments because of high
interest rate environment since the last many years though the rate of
inflation has come down drastically, said Dr. Gupta
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