India slipped to eighth position in 2020 in terms of its share of merchandise exports among developing economies, while China, the Republic of Korea, and Mexico remained the top traders. In terms of service exports and imports, China, India, and Singapore bagged the top positions. While India has been dipping in global rankings of merchandise exports, the trade deficit has also been widening, and rose by over 117% in October year-on-year. The robust growth in exports from India in the first half of FY22 will not be easy to sustain as stimulus-induced demand in developed economies might normalise in 2022 and could tilt back in favour of services. A mix of policy support and a carefully crafted strategy that continuously explores emerging opportunities of exports of manufactured products in developed and emerging markets can be a way forward. The Union Minister, Piyush Goyal is optimistic and expects India to achieve its $400 billion of merchandise exports in the current financial year.
We have discussed some of the latest updates in Indian trade below:
India’s share of trade among developing nations dips (Source)
India slipped a notch each in its share of merchandise imports and exports by developing countries to the rest of the world to fourth and eighth position in 2020, according to the World Trade Organization. However, India improved a notch to the second position among exporting developing countries in commercial services trade. For imports, the country remained unchanged in the third position. According to a report by the WTO’s Committee on Trade and Development, India’s share in merchandise exports by developing countries dropped to 3.6% in 2020 from 3.9% in 2018, while its share in merchandise imports by developing countries fell to 5.2% from 6.4%.
Non-basmati rice exports may shrink in 2022 (Source)
India’s non-basmati rice exports next calendar year may not match 2021 levels because all the rice-producing nations in the world including Myanmar, Thailand, Vietnam, Bangladesh, and Pakistan have witnessed good crop this year, a top industry official said. “Most of these countries have come out from the Covid woes, drought-like situation and infrastructure bottlenecks,” B V Krishna Rao, president of Rice Exporters Association, told ET. This means their dependence on India’s rice supply will come down.
Export orders for non-basmati rice for December delivery has fallen to around half a million tonnes from one to one and a half a million tonnes clocked in earlier months of this year, exporters said.
Made-in-India car, 2- and 3-wheeler exports notch 73% growth in April-October (Source)
As per apex industry body SIAM, which released the latest sales statistics yesterday, cumulative exports of made-in-India passenger vehicles, two-wheelers, three-wheelers and quadricycles crossed the 3.2 million mark between April-October 2021. At 32,47,934 units, this constitutes a handsome 73% year-on-year growth (April-October 2020: 18,76,447), indicating that with the opening up of key global markets, export-led growth is back for India Auto Inc.
Hyundai Motor India, which wrested the No. 1 made-in-India passenger vehicle (PV) exporter title from Ford India in FY2020, and also took the title in FY2021, is at second position in the PV export rankings but behind Maruti Suzuki by 51,179 units at this stage.
India exports 2.76 lakh tonnes of sugar in last 40 days: AISTA (Source)
Sugar mills have exported 2.76 lakh tonnes of sugar in the last 40 days of the current marketing year with maximum shipments to the UAE. The sugar marketing year runs from October to September. Sugar exports this year are being undertaken without government subsidy. The exports are taking place mostly from sugar mills of Maharashtra and Karnataka. The current ex-factory sugar prices in north India and Bihar have been in the range of Rs 35,500-37,500 per tonne and hence the quantity of sugar exported by the mills in north India are negligible
Seawise Capital is a UK based trade finance company, offering factoring facilities to Indian Exporters. We have been operating in India since 2018, and are backed by large institutional US and UK based investors. With our own balance sheet capital, we fund the customers ourselves and have a quick funding process. We have customers all over the world, ranging from small to large scale exporters and we can tailor our solutions based on your requirements.
With our fast and fully online process, you can get set up with a facility in less than a week.
One of the benefits of working with Seawise Capital over other providers is our flexibility. We understand the delicacy of the supplier/buyer relationship, and structure bespoke and cost-effective solutions that work for all the parties involved. We can cover buyers in over 150 different countries, and work with leading credit insurance providers and banking partners to make sure our clients get the best service.
Get in touch with us, to see how Seawise Capital could help you grow your exports.