India’s containerised trade with the world grew by 10 per cent year-on-year in the July-September quarter, a report by global container shipping company Maersk said Monday.
The demand for India-made goods such as vehicles and mechanical appliances as well as refrigerated cargo such as onions, meat, seafood, and pharmaceuticals have driven exports, the company said.
“Increasing competitiveness of Indian exports, coupled with improved demand in various destination countries, has propelled exports to grow at 10 per cent year-on-year…. Simultaneously, imports have risen 9 per cent year-on-year, largely dominated by a heavy inflow of paper, metal and white goods,” the report said.
Overall, the containerised market has displayed strength, with far less fluctuation compared to the previous year.
Commenting on the healthy containerised growth, Steve Felder, Managing Director for Maersk Line – South Asia said, “The upward movement in global commodity prices, depreciation of the Indian rupee and recent major shipping-logistics reforms such as liberalised cabotage policy and Direct Port Delivery are instrumental in supporting the export-import trade between India and global markets.”
With fast growing trade figures that are significantly higher than the estimated global containerised demand growth, coupled with strategic competitive pricing, India is emerging as a favourable trade destination for both advanced and emerging markets, he said.
The US, the United Arab Emirates and Nigeria have become significant export destinations for exporters from West India, the report said, adding while exports from West India witnessed a contraction of 15 per cent in the third quarter of 2017, exports increased by 10 per cent year-on-year in the same quarter of 2018 on the back of high volume exports of India-made automobiles and machinery.
Rising demand for chemicals, metals, machinery and white goods have also been driving import growth at 9 per cent year-on-year for East India, it said.
Countries like the US, Canada, the UK and South Korea have been the leading import origins for this growing region.
In terms of commodity trade, the high demand for pharmaceutical, vehicles, metals and sea-food have driven the import-export trade in international markets.
The report said the Indian pharma sector witnessed high export growth to North American nations in July-September 2018, doubling in volume.
“Strong demand from regions of Latin America, Africa and surrounding countries like Nepal, Bangladesh and Sri Lanka have pushed exports of India-made vehicles to grow 36 per cent year-on-year. Metal imports have increased 33 per cent year-on-year, on the back of metal scrap driving this growth into the North and West regions of India,” it said.