Economy

With Japan supplies hit, firms in US, Europe turn to India

Arun S. New Delhi | Updated on March 12, 2018 Published on March 18, 2011

Exports have grown at 29.4 per cent to reach $184.6 billion, while imports at $273.6 billion have recorded a growth of 17.6 per cent during April-January 2010-11.

Indian exporters are receiving calls from firms in Europe and the US to ship raw materials and intermediate goods — metals, chemicals, dyes and textile fibres — that were coming from Japan.

Exporters have been told that the price will not be a criterion due to the urgency involved. The importing firms do not want the disruption in supplies from Japan to result in the closure of their plants or disturb their production schedules.

Sources said India could make temporary gains in exports by being an alternative source till stability returns to Japan. They added that India could also be of help in sectors such as automobiles, electrical and electronics.

If a parent company is flooded with orders due to production shortfall in Japan, it can pass on the orders to its Indian subsidiary. Some exporters said they were in touch with the Government to find out from Indian embassies abroad on how they can fill the void created by Japan in global trade.

However, some engineering exporters felt that India may not gain as it is not a major manufacturer of high-end products that Japan is best known for. But China could benefit due to its mass and customised production abilities of high-end and value-added products, they said.

Processed foods

Meanwhile, sources said, radiation troubles may force Japan to import essential commodities, particularly processed foods, from India provided the goods meet food safety and health standards.

Published on March 18, 2011
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