July 6, 2021
Identifying emerging global trends in import export trade before the rest of the world is the key to success in today’s pandemic-hit economy. Data helps you identify emerging patterns and gives you the confidence to dive into a new business or fill in existing gaps. Data comes from various authoritative sources including the Directorate General of Foreign Trade (DGFI), the Ministry of Commerce and Industry, customs authorities of different countries, as well as reports from global trade researchers and international trade bodies.
Although it’s difficult to summarize insights and formulated business strategies for different industries and different markets in one brief article, we will discuss some of the major considerations you, as an international trader, ought to make before your start out on your venture. The insights mentioned here are drawn from the latest Bulletin on Foreign Trade Statistics of the DGFI as well as relevant updates collated from international sources.
1. Drug Formulations and Biologicals formed 6.74% of India’s exports during the fiscal period running from April 2020 to February 2021. Of these, 37.92% were bound for the US, 3.81% for South Africa, and 3.11% for the UK. Some of this volume may be a result of contractual fulfillments mandated before the Covid-19-induced lockdown. However, non-Covid drugs and biologicals continue to present opportunities especially for pharmaceutical formulations whose global patents are near their expiry dates. This fact makes this market a hot investment vehicle, especially if supply bottlenecks can be consistently overcome.
2. Pearls, Precious, and Semiprecious Stones was at number 3 in the list of top 10 principal commodities of export for the period from April 2020 to February 2021 according to DGFI data. Being just behind drug formulations and biologicals, and considering that India remains a highly sought-after destination for polishing and cutting of gemstones globally, this item of export is an investment worth pursuing, not only to established markets such as USA, Hong Kong, and Belgium but also to developing regions in the Asia-Pacific and Africa.
3. Global trade in goods has grown by 8%, quarter-over-quarter, in Q4 of 2020 while trade in services remained unchanged at Q3 levels. This data, derived from UNCTAD’s ‘Global Trade Trends and Short-Term Forecasts’ should be a consideration if you’ve been thinking of putting your money in the services trade.
4. East Asia’s manufacturing hubs are leading the global trade recovery. Apart from China and Japan, Taiwan and Vietnam have seen exports rise. This might be a good time to procure manufactured items at competitive prices and bring them to other emerging markets in Asia and earn a profit off of the difference.
5. Organic Chemicals continue to see significant export numbers in 2021, especially to China (share of 20.58% of organic chemical exports from India), the US (11.96% share), and Saudi Arabia (5.99% share). Organic chemicals are abundantly manufactured in India at competitive prices and at the requisite quality that international trade demands. These chemicals are used in agriculture as well as in the manufacture of medical drugs. You could conveniently set up a business that specializes in the export of organic chemicals and benefit from the comparative advantage.
6. Iron and Steel Imports have dipped lately at minus 12.95% in 2020-21, from 2018-19 levels. However, this could change when construction, automobile, and other industries using iron and steel as raw materials see expected recoveries in 2021. You could be among the first to procure such imports of high-grade steel at current prices and sell them to units in India at higher prices.
7. Cotton Raw and Waste: Although India has always been one of the largest exporters of cotton in terms of quantity, it does need to import raw cotton of a different variety that has less contamination and is richer in quality. These imports are expected to give a boost to its expansive textile industry. You can be part of India’s raw cotton imports by taking advantage of price differences in currency.
There is no dearth of opportunities in international trade and import and export of goods and services are bound to resume to normal levels once the effects of the pandemic subside. However, it is critical for you to research both your products and markets well in order to be successful and find the right niches for your chosen business. Happily Trade helps you acquire access to authentic and vetted global import export data at your fingertips. By using these extensively analyzed and comprehensively researched items of trade information you can blaze a path of quick and well-earned wealth and prosperity easily. Get in touch with the most trusted import export data provider in India today.