India’s container export-import trade grew 3 per cent in the first quarter of
2019 compared to the corresponding quarter of the previous year. According
to a report by Maersk India, the growth in exports was driven by the MiddleEast
and China amid subdued imports.
The study said container exports saw a growth of 6 per cent, led by
refrigerated cargo, engineering and pharmaceutical sectors. Imports,
however, slid, registering a negative growth of 2.2 per cent.
Steve Felder, Managing Director, Maersk (South Asia), said: “Indian
exporters are expanding their geographical range and product diversification, with visible shift towards higher value-added manufacturing
and technology-driven items. Exports have remained strong even as the rupee appreciated against the
dollar, showing a strong demand for exports from India. The moderation of
global containerised trade growth reflects a broad-based slowdown in main
economies due to declining private consumption, trade tensions, political
risks and financial volatility.”
Commodities such as plastic and rubber, tile, stone, glass, textiles, seeds,
beans, cereals and flour were the growth drivers for exports to Saudi Arabia,
China and Egypt. Vegetables led refrigerated cargo exports to Saudi Arabia.
Imports were primarily driven by Germany, South Korea and Russia.
The significant growth in refrigerated cargo has been attributed to the festive
season of Eid.
Pharmaceutical sector
The pharmaceutical sector registered a healthy growth, led by new product
launches and growing demand from the US. Maersk sources have attributed
the surge in demand to discontinuation of certain products by large generics
and plant specific issues with some companies, among others. India saw a
triple-digit growth in pharma imports from the European region.
“As the Indian logistics sector gears itself for deeper implementation of
emerging technologies like block chain and artificial intelligence, the
industry will need to focus on skill development to enhance export growth.
The government''s efforts to grow international trade are already visible
through a plethora of initiatives over the past year, including relaxation of
cabotage regulations and favourable regulatory environment emphasised by
the grant of infrastructure status to the logistics industry.
However, India need to drive and indeed fast-track investment-led
infrastructural upgrade of roads, intermodal transportation and cold-chain
infrastructure,” said Felder.
Source: The Hindu Business Line, India Tuesday, 11 June 2019