Amid robust economic reforms, especially reforms in the trade policy environment during the last few years, India’s presence in world merchandize exports remains intact and an uptick has been observed in India’s share in world merchandise exports from 1.60% in 2015 to 1.68% in 2018, said the Industry body, PHD Chamber of Commerce and Industry in a press statement.
Value of India’s merchandize exports increased by 22% from USD 264 billion in 2015 to USD 323 billion in 2018 which is the second highest after Netherlands. Merchandise exports of Netherlands registered highest growth at 27%, increased from USD 571 billion in 2015 to USD 723 billion in 2018, said the industry body PHDCCI.
Exports from United States increased only 11% from USD 1502 billion in 2015 to USD 1664 billion in 2018 and China’s exports grew only 10%, increased from USD 2273 in 2015 to USD 2464 in 2018.
Trade tensions between USA and China seems impacted their share of merchandize exports and growth of exports significantly. China’s share in world merchandize exports has declined from 13.73% in 2015 to 12.97% in 2018, while USA’s share in world merchandize exports has declined from 9.07% in 2015 to 8.65% in 2018.
Few of the advanced economies of the top ten World exporters including Germany, Japan, Netherlands and Italy were also able to increase their respective shares in the World exports during the last 3 years from 2015 to 2018. Germany’s share in world exports increased from 8.02% to 8.10%, Japan from 3.77% to 3.84% and Netherlands from 3.45% to 3.76% and Italy from 2.76% to 2.84%.
However, countries such as Korea, Hong Kong, France and UK faced deceleration in their respective share in the World exports during the same period. Korea’s share in world exports has declined from 3.18% to 3.15%, Hong Kong’s share from 3.08% to 2.96%, France’s share from 2.98% to 2.96% and UK’s share from 2.82% to 2.53%.
While apprehending about the recent escalation in the trade war between USA and China, the Industry body said that trade wars are not in favour of the world economy; the volume of world exports are likely to shrink if further escalations in trade war between USA and China continue.
The further improvement in logistics infrastructure and trade facilitation measures would enhance India’s exports growth trajectory and create millions of new employment opportunities, said the Industry body.
To harness the export potential of the country, the overall ease of doing exports is needed to be further enhanced in terms of easier access to raw materials, building linkages for strong marketing of products, improving labor productivity, labor flexibility and capital efficiency.