BackIndia’s share of trade among developing nations dips
India slipped a notch each in its share of merchandise imports and exports by developing countries to the rest of the world to fourth and eighth position in 2020, according to the World Trade Organization
PremiumIndia slipped a notch each in its share of merchandise imports and exports by developing countries to the rest of the world to fourth and eighth position in 2020, according to the World Trade Organization.
However, India improved a notch to the second position among exporting developing countries in commercial services trade. For imports, the country remained unchanged in the third position.
According to a report by the WTO’s Committee on Trade and Development, India’s share in merchandise exports by developing countries dropped to 3.6% in 2020 from 3.9% in 2018, while its share in merchandise imports by developing countries fell to 5.2% from 6.4%.
In services exports, India’s share rose to 14% in 2020 from 11% in 2018, while in services imports, its share increased to 9.4% from 8.1%, even as its ranking remained the same. Among the top 10 export destinations of developing countries, India slipped from the ninth position in 2018 to the 10th in 2020.
India’s exports contracted 14.7% to $276.5 billion in 2020, while imports dipped by 23.2% to $373.3 billion as the pandemic disrupted supply chains and a recession in many developed countries reduced demand for goods. As a result, merchandise exports of developing economies dropped by 6% in nominal terms in 2020, less than exports of the rest of the world (-9%).
In 2020, China and India, the top developing services exporters, saw slower declines than other developing economies. “China’s services exports were sustained particularly by strong growth in transport (+25%), ICT services (+10%), mainly computer services, and business services (+3%). Expanding IT services and business services (+5%) also helped India’s services. Before the pandemic, these sectors accounted for 65% of India’s services exports," the report said.
China, South Korea and Mexico remained the top merchandise traders among developing economies. The order of the top four merchandise exporters did not change between 2018 and 2020, with China being the leading exporter with a share of 34% in 2020, followed by South Korea (7%), Mexico (5%) and Singapore (5%).
Among the top 15 exporters, only Vietnam, Taiwan and China recorded export growth in 2020. The top two importers in 2018 and 2020 were China (share of 29% in 2020) and South Korea (7%). Mexico moved from the fourth position in 2018 to the third position in 2020 (5%), overtaking India.
Merchandise exports of developing economies continue to be dominated by exports of manufactured goods. Out of the seven other top 10 exporters, India (-15%), Turkey (-7%), Thailand (-2%) suffered declines in manufacturing exports. China, India, South Korea, Singapore, and the UAE were the top importers of fuels and mining products.
In agriculture, the top exporters in developing Asia were China, Indonesia, Thailand, India and Vietnam.
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