India benefits from US-China trade war

India’s overall export-import (Exim) container trade increased 6% during the fourth quarter of 2018 on the back of spike in refrigerated cargo by China.

According to the Maersk India trade report for the quarter ended December 31, 2018, the imports grew 9% in the same quarter.

India benefited from China’s decision to reduce import tariffs for several product categories as the country tried to minimise the impact of its decision to increase barriers to US imports into China.

Trade tension between the world’s two largest consumer economies – the US and China - and retaliatory sanctions notwithstanding, India benefited from China’s decision to reduce import tariffs for several product categories from the country as it tried to minimise the impact of its decision to increase barriers to US imports into China, the Maersk report said.

“China inked a protocol with India in the fourth quarter to import fish meal and fish oil from the country, making it one of the key export markets for refrigerated cargo. It also became one of the highest contributors to the country’s export basket in the fourth quarter with a 71% year-on-year increase,” it said.

India’s western region witnessed the highest growth in imports of dry cargo.

Exports grew mainly due to refrigerated cargo and agro-commodities, especially vegetables, seafood, fruits, nuts, cereals and rice, the report said.

“Dry cargo exports were flat this quarter, barring vehicles, which saw double-digit growth in volumes,” said the report.

On the increase in refrigerated cargo and agro products, Ajit Venkataraman, managing director, APM Terminals Inland Services South Asia, said, “Unlike professional and large-scale farming observed in western countries, a majority of India’s agricultural produce comes from small, rural producers based in the hinterlands. One of the most crucial challenges faced by the country’s agriculture sector is food wastage, costing the industry billions of dollars every year. An efficient ‘farm-to-fork’ cold chain network managed by the skilled workforce with refrigerated containers, temperature-controlled warehouses along the service trail, will help curtail this loss.”

As per the Maersk report, the western region saw the highest growth of imports of dry commodities with strong growth in iron and steel scrap and electrical motors, whereas exports were largely driven by vehicle exports to countries like Egypt and Turkey.

Overall, iron and steel scrap were mostly imported from countries like UK, Belgium and the Netherlands to the northern and western regions of India. The northern region logged highest exports growth in chemicals, plastic, rubber, etc. Furthermore, India also witnessed a 74% rise in its pharmaceutical exports to the US.