MUMBAI: India’s EXIM container trade volumes growth slowed down in Jan-March due to a short-term decline in imports, said a trade report by A.P. Moller-Maersk.
"India's EXIM container trade volumes have grown by 7 per cent in the first quarter of 2017 as compared to 10 per cent in the same period last year. The slowdown has been due to a short-term decline in imports," the operator of the world's biggest container line said in the report.
While container export volumes registered a growth of 8 per cent in the quarter, same as the year before, import growth volumes declined to 5 per cent against 13 per cent in the corresponding period last year, the report said.
Trade with Europe remained flat. Exports to countries like Algeria, Italy and Spain increased by 48 per cent, 10 per cent and 9 per cent respectively; Algeria saw a rise in beef and auto imports from India which led to this substantial increase However, demand for Indian garments, fruit and nuts dipped sharply in major markets like the UK, Germany and France, according to the report.
On imports, while automobiles and wood pulp from Germany, Chemicals from Belgium, marble and other stones from Italy, appliances and kitchenware from Turkey and finally papers, plastics and rubber from Spain increased, paper and iron/steel scrap from the United Kingdom, metals and chemicals from Russia and metal scrap from Netherlands registered negative growth.
“Traditionally, United Kingdom is India’s largest export market in the region. However, a spending binge in the holiday season last year followed by rising prices post-Brexit and news of France potentially cutting off ties with EU have affected consumerism negatively in the UK which has resulted in this drop. Additionally, the appreciation of the rupee against the euro has adversely impacted India's exports to the EU bloc," said Franck Dedenis, Head of West Central Asia Trades at the shipping li ..
“The time is taken to revive the economy after demonetisation in Q4 of 2016, and the uncertainty around implications of GST in Q1 2017 led to conservative buying patterns in India which are the main reasons for the drop in demand and hence drop in imports.” he added.
Imports of products such as furniture, electronics and automobiles from China, United States and Germany were hit by negative growth owing to evolving economic reforms.
Imports of products such as furniture, electronics and automobiles from China, United States and Germany were hit by negative growth owing to evolving economic reforms.
“These commodities are cash sensitive and have been impacted by demonetisation, effects of which were felt in the first quarter of the year. Infact in some cases inventory from the previous quarter also trickled into the first quarter of this year. In addition to that, with GST rollout around the corner, a lot of people have taken a wait and watch approach towards making high-end purchases on certain ..
Source: Economictimes.indiatimes.com
