Chennai: India is poised to achieve its highest-ever exports to China in the current fiscal after its exports to neighbouring nation grew after several years, the Ministry of Commerce and Industry said.
The country’s exports to China reached $12.7 billion during April-December 2018 on account of growth in shipments of marine products, chemicals, plastics, petroleum products, grapes and rice, the Ministry said.
“India’s exports to China have grown after several years. India is poised to achieve its highest ever exports to China this fiscal. Between April-December 2018, exports were $12.7 billion which is closer to last year’s exports of $13.33 billion,” a statement from the Commerce Ministry said.
Being opportunistic
In a bid to cash in on the trade war between America and China, the Ministry has identified and shared with Indian exporters and other stakeholders, specific items where the US would lose competitiveness in China and where India had an export potential and encouraged the exporters to seize this opportunity.
Several B2B meetings with Chinese buyers were facilitated through the Indian embassy in Beijing, the Ministry said in a statement.
Further, Chinese grape buyers were recently invited to visit Indian grape farms and related units under the Agricultural and Processed Food Products Export Development Authority.
It must be noted that recognising that the regulatory environment in China remains a challenge for Indian exporters, the Ministry signed three protocols in the last financial year.
Market penetration
It also said that while some of India’s concerns have been addressed, more efforts are required for greater market penetration in China.
“India is hopeful of soon signing protocols for export of Indian soybean meals, cakes and pomegranates to China in the near future, as these are in advanced stages of discussion,” it said the statement.
It added that discussions are on with the Chinese side for early announcement of Chinese import quotas for sugar and rice for 2019 so that Indian exporters are able to plan their exports well in time.
In light of the US duties on Chinese products, similar steps have been taken with regard to Indian exports to the US, the Ministry officials stated.
| Slowdown |
| China’s December exports unexpectedly fell 4.4 per cent from a year earlier, with demand in most of its major markets weakening. Imports also saw a shock drop, falling 7.6 per cent, the biggest decline since July 2016.
Manufacturing activity contracted for the first time in 19 months. New orders fell and retail sales eased. Firms have reported softer demand despite some discounting. For some firms, capacity utilisation is at 40-50 per cent. Outstanding credit continued to grow at its slowest pace in a decade. On an important note, between them, the China’s households, government and corporations have debts totalling almost three times the size of the country’s GDP. |