Mumbai: India is not just dependent on America and Europe for her exports, says a latest study by Care Ratings, exploding a traditional perception about India’s foreign trade.
There has been a distinct shift towards Asia between 2003 and 2013, with Europe coming second and Amer-ica third. Exports to Asia have grown by more than 23 per cent compounded annual growth rate from $22.2 billion in FY03 to $150.4 billion in FY13.
“India has expanded its commodity basket of trade from primary agri-products to manufactured goods and petro-related products; with Asia emerging as the largest trade partner in recent years,” said Madan Sabnavis chief economist at Care.
Exports to Europe totalled $58.8 billion in FY13 followed by the US at $53.4 billion. In FY13 the share of Asia in India’s exports rose to 50.1 per cent compared to 42.2 per cent in FY 03.
The share of exports to Europe declined from 25.7 per cent in FY03 to 19.6 per cent in FY 13, while that of America came down to 17.8 per cent from 24.6 per cent in FY 03.
India also sourced her imports — 57.7 per cent of overall imports from Asia, totaling $283 billion in FY13 registering a 26 per cent growth over FY03. Against this imports from Europe were just $91.7 billion followed by America with $58.2 billion.
There has been a significant change in the commodity basket from primary agri products to manufactured goods and petro-related products.
He said while exports saw manufacturing goods coming down to give way to exports of petroleum and crude products reflecting India’s refining capability, “the shift helped diversify our exports basket and buffered to an extent the impact of any slowdown in the West.”
India’s imports of petroleum, oil and lubricants (POL) products has increased as also in recent times, gold, coal and ores have become large import components from Asia. This is also due the emergence of China as a major trading partner, said Mr Sabnavis.
