Hit by slowdown, India-EU trade drops
Hit by slowdown, India-EU trade dropsNew Delhi, May 16 (KNN) Bilateral trade between India and the European Union (EU) witnessed a decline in 2012 and the items affected by the slowdown included clothing, footwear, precious metals, iron and steel.
Trade in goods declined by five per cent from over Euro 80 billion in 2011 to Euro 76 billion in 2012, according to the latest EU figures.
The monthly trade figures show that the sharpest contraction took place during mid-2012.
India was the ninth most important supplier to the EU market in 2012, reverting to the ranking it had in 2010, accounting for 2.1 per cent of the EU's total imports. In 2011, it was at the eighth position in terms of importing goods to EU market.
Moreover, the reduction in imports in 2012 appears to be somewhat against the global trend, since total imports to the EU has increased by four per cent last year.
However, the value of bilateral trade in services in 2012 indicates that India exported Euro 11 billion to the EU, while exports from the EU were worth Euro 11.7 billion. This would represent a roughly 10 per cent increase over 2011, when two-way services trade totalled Euro 20.4 billion.
It is evident that there is a large and untapped potential for Indian exporters to increase their sales into the EU market.
Further, more than 85 per cent of Indian exports in goods are concentrated in only seven countries, which means that less than 15 per cent of these exports are purchased in the remaining 20 countries of the EU.
Many of the EU countries are experiencing an economic recovery and represent increasingly attractive markets with higher purchasing power.
But the relative fall has not been the same across all member states of the European Union. As far as Indian exports are concerned, certain members of the EU maintained or even increased their level of imports from India in 2012 for example France, the Netherlands, Spain and the UK.
The Euro zone economy contracted more than estimates, extending recession to a record sixth quarter. Gross domestic product (GDP) fell 0.2 per cent in the 17 nation euro zone, after 0.6 per cent decline in the previous quarter. (KNN)