As the world trade recovers from the pandemic shock, faster than authorities and experts expected, we are seeing India reach several positive benchmarks. This includes record $34 billion exports in March, and Amazon India’s exports from Indian MSMEs reaching the $3 billion mark. WTO, after observing the quick merchandise trade recovery of the world, is expecting for a strong but uneven recovery for world trade including trade volumes to increase by 8% this year. 2020’s recovery was led by China and the US, the two biggest economies of the world.
Unlike India, the US has been hitting record covid vaccination rates, and China was able to control the spread of the virus early on. India on the other hand, has been reeling with yet another wave of the virus with the total number of cases reaching new highs. It is yet to be seen if this could have a significant impact on India’s trade volumes. India has currently delayed the exports of the AstraZeneca vaccines and antiviral drug Remdesivir as cases surge on domestic soil.
We discuss some of the major updates in Indian and world trade below:
India’s exports reach record $34 billion in March; trade deficit at $14.1 billion (source)
India’s merchandise trade surged more than 50% each from a year earlier in March following a low base, leading to a trade deficit of $14.1 billion. Preliminary data released by the commerce ministry on Thursday showed that merchandise exports grew 58% to a record $34 billion and imports rose 53% to $48.12 billion in a month when global trade faced significant challenges due to the blockage of the Suez channel by the Ever Given vessel for a week.
“This is the highest-ever exports in Indian history, both in terms of value and growth,” a commerce ministry official said under condition of anonymity.
Exports from Indian sellers hit $3 billion mark for Amazon (source)
Amazon India’s exports from small and medium sellers in the country, part of a company programme to ship products to global markets, have crossed the $3 billion mark. The firm said it has digitised 2.5 million micro, small and medium entrepreneurs (MSMEs) and helped create nearly 1 million jobs in the country till date.
Amazon’s “Global Selling” programme was launched in India, a key growth market for the company, in 2015. The programme, also operational in other geographies, has helped around 70,000 India-based sellers reach 17 international markets. The biggest market for Amazon’s Indian exporters is the United States.
India-Australia trade & investment ties to get major boost with Australia India Business Exchange launch (source)
The Australia India Business Exchange (AIBX) will provide businesses in both nations with market insights and connections to foster commercial partnerships that will help generate jobs and business opportunities in Australia and India. India was Australia’s eighth largest trading partner and third-largest market for services export in 2019-20. Two-way goods and services trade totalled $26.2 billion in 2019-20, and the two-way stock of investment was $36.7 billion in 2019.
The 2021 program will be overseen by the Australian Trade and Investment Commission (Austrade) and include virtual events, in-market activities and online resources to support Australians and Indians throughout the business exchange.
World trade to see strong but uneven recovery, to grow by 8% in 2021: WTO (source)
The World Trade Organization (WTO) said on Wednesday that global trade is expected to have a strong but uneven recovery after the Covid-19 pandemic shock, forecasting an increase in the volume of world merchandise trade of 8% this year. The global trade body said prospects for a quick recovery in world trade have improved as merchandise trade expanded more rapidly than earlier foreseen in the second half of 2020.
“World merchandise trade volume is expected to increase by 8% in 2021 after falling 5.3% in 2020, a smaller decline than previously estimated,” the WTO said in a press release, Xinhua reported. The WTO figures showed that China was the world’s top exporter last year, accounting for 14.7% of world merchandise trade, and the second-largest importer behind the US with a share of 11.5%.
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.