Australia
(Source : Consulate General of India, Sydney)
Indian merchandise Exports to Australia 11 % increase, whereas the Australian export increased by 101 % for the same period. Refined Petroleum, Medicaments, Pearls & precious stones, Made up textile articles, railway vehicles and organo-inorganic compounds were dominant commodities of export from India to Australia, in that order. A notable increase in Indian export during Jan-July 2017 is Railway vehicles, attributed to the supply of “Made in India” metro train coaches to Australia at USD 65 m with the growth of 170 % over the corresponding period in 2016. Another noteworthy increase of exports from India to Australia is Organo inorganic compounds, which increased 94 % in Jan-July 2017 (value USD 62 m) over the corresponding period last year.
Export of ‘Coal’ from Australia to India was the main contributor for the increase in bilateral trade between the countries for the period Jan-July 2017 compared to the corresponding period in 2016. With the export of coal to India witnessing 102 % increase during Jan-July 2017 compared to the corresponding period in 2016, it pushed the overall bilateral trade by 71 %. In value terms, the total trade increased from USD 5.5 to USD 9.4 b between Jan-Jul 2016 and Jan-Jul 2017. It may be noted that out of USD 9.4 b overall bilateral trade between India and Australia, the export of coal alone, from Australia to India, contributed USD 4.2 b during the reporting period (i.e 45 % of total trade).
Significant trends
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During the period Jan-Jul 2017, the bilateral trade figures between the two countries were US$ 9.4 billion as compared to US$ 5.5 billion during the same period of last year. This is an increase of approx. 71 percent.
India’s merchandise goods export to Australia (Australian imports from India) was US$ 2.2 billion which is 11 percent more compared to the same period during 2016.
India’s merchandise goods import from Australia during Jan-Jul 2017 stood at US$ 7.2 billion with an increase of 101 percent as compared to the same period of previous year.
Indian merchandise Exports to Australia was dominated by ‘Refined Petroleum’ which experienced a marginal increase of 0.3 percent as compared to the same period in 2016, followed by the usual items – Medicaments, Pearls and Gems, Made up textile articles & Jewellery.
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The total bilateral trade has increased by USD 3.9 billion during the period.
The other highlights of bilateral merchandise goods trade has been the significant increase in export of ‘Organo inorganic compounds’ (approx. 94%) from India to Australia and import of ‘Coal’ (approx. 102%), chick peas, wheat and gold from Australia to India during Jan – Jul 2017.
Railway vehicles have been in the India’s top 10 exports to Australia at US$ 65 million and with a percentage growth of 171%. This can be mainly attributed to the Bombardier supplied “Made in India” metro train coaches to Australia.
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Canada
(Source : High Commission of India, Ottawa)
Products with Export Potential for India
Comparative advantage vis-à-vis peers in terms of manufacturing costs, market knowledge, technology and creativity has been a driving force for engineering exports from India. Engineering exports from India stood at US$ 65.23 billion in FY 2016-17. The export of engineering goods grew by 11.33 per cent year-on-year. Top ten importers of Indian engineering products during FY 2016-17 were US (US$ 7.06 billion), UAE (US$ 4.03 billion), Singapore (US$ 2.80 billion), UK (US$ 2.48 billion), Mexico (US$ 2.45 billion), Malaysia (US$ 2.39 billion), Germany (US$ 2.21 billion), Nepal (US$ 2.16 billion), Italy (US$ 2.08 billion) and Bangladesh (US$ 1.99 billion). The EU, ASEAN+2 and North America recorded the highest shipment of engineering products from India, with a share of 21 per cent, 16 per cent and 15 per cent respectively in total engineering exports in FY 2016-17. Capacity creation in sectors like infrastructure, power, mining, oil & gas, refinery steel, automotives, and consumer durables has been driving demand in the engineering sector. Separately, the approval of significant number of special economic zones (SEZs) across the country and the development of the Delhi Mumbai Industrial Corridor (DMIC) across seven States is expected to further bolster the engineering sector.
(Source: IBEF, EEPC India)
Significant Trends in Trade and Investment
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Canadian exports to India have grown nearly 50% as compared to the corresponding period in 2016, while imports from India have only grown 9%. Exports of agricultural products (Edible Vegetables and Certain Roots and Tubers, Fertilizers) to India have enjoyed a significant leap, and make up the largest share of exports. Due to Alberta’s oil sands, mineral fuels are the 2nd largest export and witnessed the second highest growth rate. Mineral fuels are also Canada’s largest export to the world. Aircrafts and Spacecrafts showed the 3rd highest growth rate, leading this group to be the 9th biggest export to India. On the other hand, Pearls and Jewelry experienced the biggest drop in exports as compared to the corresponding period with an 8% decline. Ores, Slag and Ash, continued their decline from the previous month (-54.29%) with another decline of 7%. In terms of imports from India, Nuclear Reactors, Boilers, Machinery and Mechanical Appliances, continued their decline from the Jan-May period to decline an additional 22% while Pharmaceutical Products had the largest increase of 21%.
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Canada’s total trade balance with India has historically been very low, and the trend has been continuing this year. The total trade balance, including exports and imports, is less than 1% of Canada’s total global trade balance. This is despite the significant nearly 50% growth in exports over the past year. Canada’s exports to India have grown nearly sixfold over its imports from India from the corresponding period last year. By contrast, its growth in worldwide exports is only double that of the growth in its worldwide imports. Canada enjoys a trade surplus of $120 million with India, although India is only a minor trade partner of Canada. Overall, Canada has a trade deficit with the world, amounting to nearly $2 billion in the reporting period.
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France
(Source : Embassy of India, Paris)
Significant Trends in trade and investment
Trade – In Jan-July 2017, India France bilateral trade stood at € 6.06 billion (+23.82%) as compared to the corresponding period the previous year. India’s exports to France increased by 18.3% during this period with a rise in exports of following top 10 category products: mineral fuels & oils (235.94%); nuclear reactors, boilers, machinery and mechanical appliances (6.83%); automobiles and parts (54.14%); electrical machinery (14.91%), footwear (4.56%), organic chemicals (2.18%), articles of leather (3088%) & gems and jewellery (1.77%). However there was a drop in exports of knitted or crocheted articles of apparel & clothing accessories (-0.96%) & non knitted or crocheted articles of apparel & clothing accessories (-0.43%),
Meanwhile, French exports to India increased by 31.2% during the same period: Exports of following top 10 ranked products increased: aircraft & spacecraft (105.63%); nuclear reactors, boilers, machinery & mechanical appliances (68.89%); miscellaneous chemical products (24.35%); electrical machinery & equipment (12.39%); plastics and articles thereof (10.9%); & automobiles and components (8.46%). However, exports of optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus & parts thereof fell by 23.37%, pharmaceutical products by -0.1%, organic chemicals by 15.48% & those of iron & steel by -14.05%.
Investment – According to statistics released by Business France, “There are over 150 Indian companies operating in France, where they employ more than 7,000 people. Eleven new investments from India were recorded in 2016, creating or maintaining 171 jobs. Indian investments in France in 2016 were often in high value-added activities, particularly R&D and engineering (36%), decision-making centres (27%), including a European headquarters, and business services (18%). Investments came in a variety of sectors, including software and IT services (18%), energy and recycling (18%), aerospace, naval and railway equipment (18%), and textiles and clothing (18%) sectors. Indian companies invested primarily in the Auvergne-Rhône-Alpes (27%), Ile de France (Paris region) (27%) and BourgogneFranche-Comté (18%) regions. Selected investment projects in 2016 were from:
Royal Enfield [in 2016 this Indian firm announced that it would be establishing its pan-European headquarters in Paris (Ile de France region), with the opening of a concept store in Levallois-Perret]. Guesswork [a winner in French Tech Ticket, season 1, this Indian start-up markets a mobile app that helps small online retailers connect with customers. Guesswork won a one-year residency for 2016 in the Startup42 business incubator in the Parisian suburb of Kremlin-Bicêtre (Ile de France region)]. Etosha: [this specialist in flavours, fragrances and essential oils for agri-food, personal care (deodorants, perfumes and soaps) and homecare (detergents) recently established a French subsidiary in Grasse (ProvenceAlpes-Côte d’Azur region) that will create 10 jobs over the next three years]. Dymond Cleantech: [a winner in French Tech Ticket, season 1, this Indian start-up has developed an electrochemical water purification technology based on diamond electrodes. In 2016, it was resident in the La Paillasse business incubator in Paris (Ile de France region), where it had co-working space and access to coaching sessions].
Saudi Arabia
(Source : Embassy of India, Riyadh)
During 2016-17, the value of India Saudi Arabia bilateral trade stood at USD 25.07 billion registering a decrease of 6.12% over last year (USD 26.71 billion). Indian imports from Saudi Arabia decreased by 1.85% to USD 19.94 billion (in 2016-17) from USD 20.32 billion (in 2015-16) whereas Indian exports to Saudi Arabia decreased by 19.70% to USD 5.13 billion (in 2016-17) from USSD 6.39 billion (2015-16).
In 2015-16, the bilateral trade decreased to USD 26.71 billion registering a sharp fall of 31.98% from USD 39.27 billion in 2014-15, as per figures provided by the Directorate General of Foreign Trade. The decline was mainly due to low petroleum and commodity prices and lower global demand. [During 2015-16, despite a 14.79% increase in quantity of India’s crude oil (HS Code 27090000) imports from Saudi Arabia (39.59 MMT against 34.49 MMT in 2014-15), the same in value terms decreased by 38.13% (USD 13.49 billion against USD 21.80 billion in 2014-15)].