Share of top ten export destinations increased from 49% to 51.6% : PHD Chamber

Despite slowdown in World exports, India’s export growth remained intact with USA

India’s exports to top ten destinations have gained strength as the share of top ten destinations has increased to 51.6% in 2016-17 from 49% in 2013-14 said Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry.

The decline in exports growth rate was also less with top ten destinations as compared with rest of the economies.

Export volume to top ten export destinations declined 7.7% from US $ 154.05 billion to 142.55 billion in 2016-17 whereas export volume to rest of the economies declined 16.6% from US $ 160.36 billion in 2013-14 to US $ 133.73 billion in 2016-17.

India’s overall merchandise exports declined 12% during the same period from 2013-14 to 2016-17 from US$ 314 billion to US $ 276 billion.

Despite overall slowdown in exports growth, it is inspiring to know that India’s merchandise exports to USA grew from US $ 39.14 billion in 2013-14 to US $ 42.33 billion in 2016-17 showing a growth of 8.1% with the World’s largest economy, said Mr. Jiwarajka.   However, India’s exports to China declined 31% from US $ 14.82 billion in 2013-14 to US $ 10.2 billion in 2016-17.

Nearly 53% of the India’s  exports to USA are in the form of consumer goods, followed by intermediate goods (29%), capital goods (12%) and raw materials (6%).

India and USA have consistently increased their intra-industry trade over the last many years, said Mr. Jiwarajka.

Going ahead, scope for enhancing the present intra-industry trade between India and USA is immense, he said.

India’s products’ export pattern has grown tremendously in tandem with the import pattern of USA. The alignment has recently witnessed a jump in 2016 indicating the demand pattern of USA has been inclined more and more in favour of supply pattern of India, he added.

Considering the steady trade pattern with USA, our exports to USA are seen at US $ 50 billion by the next financial year 2018-19, said Mr. Gopal Jiwarajka

Exports to UAE also increased from USD 30.52 billion in 2013-14 to US $ 31.3 billion during the same period showing a growth of 2.5%, said Mr Jiwarajka.

Hong Kong has superseded China as the 3rd biggest export destination for India on the back of rising demand of Indian products in Hong Kong. 

India’s exports to Hong Kong grew 11.2% from US $ 12.73 billion in 2013-14 to US $ 14.2 billion in 2016-17, he said.

Going ahead, we are hopeful that our exports will touch US $ 325 billion mark in the current financial year 2017-18, said Mr. Gopal Jiwarajka.