India has been rapidly diversifying its exports markets from the traditional export partners towards developing economies, thereby maintaining a steady export growth despite global slowdown, said PHD Chamber of Commerce and Industry.
The high growth destinations, such as East Asian and South-East Asian economies like China, Singapore and Hong Kong have dominated the India’s exports scenario with the third, fourth and fifth positions
during 2012. This marks a considerable leap taken by these economies as compared to 2001 and 2006.
USA had maintained its high position in India’s top 10 export destinations over the years. However, its share in India’s total exports has registered a slip from around 21 per cent in 2001 to 17 per cent in 2006 to 12 per cent in 2012. Whereas, UAE which was in the third position in the list with a share of around 6 per cent in 2001and second with a share of around 8 per cent in 2006, has emerged as the top export destination with about 12 per cent share in 2012.
Similarly, UK has slipped from the fourth position in 2001, to fifth position in 2006 to seventh position in 2012. Other economies such as Germany and Belgium have all receded in terms of share in India’s
exports slipping from fifth to eighth position from 2001 to 2012 and seventh to ninth position from 2001 to 2012, respectively.
The degree of correlation, between India’s exports growth and real GDP growth of export destinations has been found to be 0.89 over the last decade indicating that India’s exports growth has been found to be significantly dependant on the real GDP growth of destination economies.
Further, there is a narrowing dependence on selected economies for exports. The share captured by the top ten exports destinations have been narrowing from 57.7 per cent in 2001, to 57.3 per cent in 2006 to 51.6 per cent in 2012.