• Q1 2018 BRICS Export-Import trade registers steady growth of 1.5% in Q1 2018 Y-o-Y (Compared to Q1 2017); China & India lead the Export-Import trade as Brazil, South Africa and Russia witness a slump in the trade as compared to Q1 2017
• Overall, in Q1 2018, the export trade from India to other BRICS’ nations observed an increase of 7% Y-o-Y; Brazil & South Africa being the top consumers
• USA, China & Saudi Arabia have emerged as the top export destinations for India in Q1 2018 followed by United Arab Emirates (UAE); India stays strong as one of the top export destinations for China among the BRICS
• India’s exports to BRICS nations remains strong with 7.5% increase in Q1 2018 Y-o-Y (as compared to Q1 2017)
MUMBAI: Ahead of the scheduled 10th 2018 BRICS summit in South Africa, Maersk Line, world’s Largest Container Shipping Company, has released the BRICS Export-Import containerized trade data stating that the world registered a YoY growth of 1.5% in the first quarter of 2018 as against in the same period last year.
The growth for BRICS, led by India and followed by China was due to their growing exports to the world at 13% & 5% Y-o-Y respectively. South Africa & Brazil witnessed the highest slump in the overall Export-Import trade in Q1 2018 Y-o-Y at -28% & -15%. The overall exports from India to BRICS saw an upswing of 7.5% in Q1 2018 Y-o-Y in terms of total volumes while the Country’s imports from BRICS nations is reduced by -3.5%.
Commenting on the export development amongst BRICS nations, Mr. Steve Felder, Maersk Line Managing Director for India, Sri Lanka, Bangladesh, Nepal, Bhutan and Maldives said, “In 2017, the BRICS nations contributed to 23.6% of the world economy in terms of GDP value and as per IMF (International Monetary Fund), this will rise to 26.8% by 2022. The overall Export-Import trade of BRICS has been steadily rising for the past two years, with China and India driving the growth.”
BRICS Export-Import: The overall BRICS’ Export-Import is pegged at approx. 12 million FFE (Forty-Foot Equivalent Unit) in terms of volumes and has witnessed a steady annual growth. BRICS exports registered a volume growth of 4.2% in Q1 2018 Y-o-Y.
• The total BRICS exports to the world for Q1 2018 stands in between 7 million to 8 million FFE approx.
• India has the highest exports in Q1 2018 pegged at 13% in the past five years. Owning close to 80% of Export-Import in terms of volumes, China leads the Export-Import trade among the BRICS nations with approx. 9 – 10 million FFE followed by India between 1.5 million to 2 million FFE
• South Africa witnessed a drastic fall in its exports in Q1 2018 due to the political uncertainty that hit the economy and trade
• On the import front, India is the second largest importer among BRICS’ nations followed by China and has a buoyant double-digit import growth rate trade at 15% in Q1 2018 Y-o-Y
• While occupying the largest chunk of imports for the BRICS Countries, China has witnessed a downfall in imports for Q1 2018 at -4% Y-o-Y
• In Q1 2018, South Africa and Brazil emerged as the top growing customers for Indian exports among the BRICS nations witnessing 15% & 11% jump respectively over the last year Y-o-Y while Russia and China clocked a growth of 5% & 6% Y-o-Y respectively
• On the import front, India witnessed an increase in volumes from Russia and South Africa at 37% & 28% respectively making them the fastest growing import trade partners for the Country.
Explaining the rationale behind India’s export growth, Mr Felder said, “India’s bilateral trade relations with China have received much needed impetus in Q1 2018 with China offering greater access for Indian exports in pharmaceuticals, food grains, cotton and petrochemicals. As for the Western markets, the repercussions of Brexit resulted in US becoming the third largest car importer from India in FY 2018 and affected the Indian exports to UK and Europe. In addition, the recent Cabotage policy relaxation by the Indian Government has led to a healthy competition among shipping lines and will further open up transhipment opportunities for Indian Ports.”
“As per Chamber of Commerce and Industry, India has made significant improvement in the ‘Ease of Doing Business’ ranking, moving from 130th position in 2017 to 100th position in Q1 2018. We believe, that the change is a clear evidence of India’s resolve to bring reform to its logistics sector and thereby enhance its Ease of Doing Business and cost competitiveness ratings.” he further added.
Top Export-Import Destinations Q1 2018:
• USA, China, Saudi Arabia, UAE and United Kingdom emerged as the top 5 export destinations for India in Q1 2018.
• China, USA, Korea, UAE and Saudi Arabia form the top import origins for the Country.
• Interestingly, USA and Japan are amongst the top export destinations for China.