Variety

India's new trading partners

Updated on: Apr 22, 2012

The fatigue from the global economic recession seems to be receding. Most of the emerging economies of Asia seem to be climbing up the path of economic recovery and growth.

But India seems to be presenting a mixed picture with several positives and some negatives. The Economist , in a recent cover story had pilloried ‘How India is losing its magic.'

In the recent India Economic Update of March 2012, the World Bank had given a detailed account on how India is losing its charm among foreign investors.

This was even as the emerging economies were on a rapid revival and growth path. Attracting huge foreign investments, they were expected to recapture their frontline growth story once again. Is the time running out for the Indian economy?

But India seems to have several strong points. And foreign trade is one of them. Even as the crisis triggered by the Lehman Brothers collapse gripped the rich countries of the West, India was left relatively unscathed. While global trade plummeted, India was left bruised by not battered.

In a natural and smooth transition, India's focus of foreign trade had shifted from the rich countries of West to the emerging economies of Asia, the Asean region, West Asia and North Africa.

The shift came about as the pace of economic development of the West slowed down and economic activity shifted to the Asian and Latin American countries. There was increased demand for raw materials from the region and foreign trade grew.

New industries came up and there was increased value addition. Purchasing power of the people of the emerging economies increased: triggering an increased demand for goods and services. Trade, both domestic and foreign trade kept looking up.

Nomenclatures have changed. We no longer refer to trade with OECD countries or with Less Developed Countries. Those nomenclatures were all for the old century. New names like WANA have entered into the foreign trade lexicon. And India continues to play a dominant role in the foreign trade growth saga of the region.

Published on November 15, 2017

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