Economy

Britain needs to refocus on exports to BRIC markets: E&Y report

Vidya Ram London | Updated on March 12, 2018 Published on February 07, 2011

Britain needs to refocus its efforts on exporting goods and services to countries such as India, a prominent forecasting group warned here on Monday.

Despite the impetus of the weak pound, Britain's exports had not revived as much as they could have partly because of a neglect of BRIC markets, the Ernst & Young Item Club said on Monday.

While around 10.6 per cent of German exports go to Brazil, Russia, India or China, and 11.1 per cent in the US, in Britain the figure is just 5 per cent, with the country failing to make the most of its Commonwealth links and focusing on the EU instead. This failure has resulted in Britain's share of global exports falling significantly: down from around 10 per cent in 1950 to a mere three per cent in 2009 - halted in between by the discovery of North Sea oil.

Britain's goods export to India — $4.5 billion in 2009 — has dwarfed the $11.3-billion from Germany, and is close to the values of both Italy and France — $3.8 billion and $3.4 billion, respectively. Only in services exports does Britain perform relatively better to Germany in India, with 2008 exports totalling $3.2 billion, against $2 billion from Germany (the overall figure for Britain to all BRIC nations is still smaller than the German equivalent).

Upbeat on India

However, the Ernst and Young club report strikes an upbeat note, noting the 25 per cent fall in sterling on a trade weighted basis between mid-2007 and 2009, a fall that has the potential to revive exports in the long-term.

Led by electrical, optical and other high tech items in the goods sector, and banking and financial services in the service sector, the Club predicts that exports could rise by around 8.5 per cent a year up till 2020.

Exports to India could rise the fastest. The club predicts that Britain's exports of goods and services to India will rise by a higher rate than to any other country, growing by 13.6 per cent between 2010 and 2020, against 12.7 per cent to China, 10.3 per cent to Brazil, 8.6 per cent to the US and 7.8 per cent to Russia.

“We think exports to India will increase across a broad range of industries, particularly in goods, rather than services,” Mr Andrew Goodwin, Senior Economic Advisor to the Ernst & Young Item Club told Business Line. He expects the biggest gains to come in areas such as optical precision instruments and other high tech goods, as well as transportation.

The report comes ahead of a new Trade and Investment White Paper - due to be published on Wednesday - in which the British Government will outline its plans for developing trade with other countries.

Published on February 07, 2011

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Sincerely,

Support Quality Journalism
null
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.