Automotive exports to the United States, Egypt and Turkey helped dry cargo exports grow 10%
Containerised cargo segment in India has witnessed a double-digit growth of 10% during the first half (January-June) of the current year.
The double-digit growth is being attributed to a mix of fluctuating rupee, growing industrial production and ongoing infrastructure developments in the country.
As per AP Moller-Maersk's trade report, the 10% rise included an increase in containerised exports to 8% and imports of 12%.
Automotive exports to the United States, Egypt and Turkey helped dry cargo exports grow 10%.
"China's decision...to increase restrictions on waste imports and close certain types of factories to reduce pollution has continued to benefit local Indian paper recyclers and manufacturers," read the report. The rising domestic demand for newsprint, packaging and writing paper has led to a 29% growth in waste paper imports to India, making it the fastest growing paper market.
In a move that will help reduce the widening trade deficit, there was a decline in reefer imports, primarily because of the government imposing a ban on Chinese grown apples and pears since May 2017.
On the subject, Steve Felder, managing director for Maersk Line (South Asia), said, "Evolving external bilateral trade dynamics, coupled with an increasingly robust domestic trade environment is enabling India to position itself as among the most pursued global destinations for foreign investments."
However, according to Ajit Venkataraman, managing director of APM Terminals (South Asia), the biggest challenge for the trade in India comes from the lack of infrastructure. He said, "The incorrect loading of refrigerated cargo into a reefer container or an error in temperature setting can prove disastrous for the consignment. Having said that, the refrigerated cargo is much more promising as a segment, as there is 20-30% of wastage in perishables, which can be reduced and converted into consumables by maintaining a good and robust cold chain."
Geographically, north India leads the country's growth story as exports from this region rose 13% while imports grew 23%. Textiles, apparels, plastic and chemicals were some of the top commodities exported from this region, particularly to the US and Saudi Arabia.
As per Nomura, in the first half of 2018, India has observed a solid economic growth of 7.8%, emerging from the effects of demonetisation and GST implementation.
SMOOTH SAILING
- 8% - Containerised exports growth
- 12% Containerised imports growth
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