Based on the favourable GDP growth being witnessed in North America and a continued recovery of Europe, we believe that the prospects for India's Retail and Lifestyle exports are fairly strong
MUMBAI: DAMCO, part of A.P. Moller - Maersk, and one of the world's leading providers of supply chain management services and freight forwarding revealed that exports of India-made Retail and Lifestyle products clocked a strong 16% growth in 2017, over the same period last year.
Driven largely by the increasing demand for locally-made Home Goods and Children's Toys in North America, India's exports have steadily gained popularity in many countries across the world because of a high-quality proposition which combines superior products, shorter lead time and scalability among local manufacturers.
As a result, while export volume growth continued to come from India's traditional trading partners - North America (up by 7%) followed by Europe (up by 2%) in 2017, new markets like Turkey and Thailand increased their sourcing of Retail and Lifestyle products from the geography by 5449% and 578% respectively during the same period.
Shedding light on these trends, Mr. Vishal Sharma, CEO India, Bangladesh, Sri Lanka -DAMCO said, "Global retailers are gaining confidence in India-made Retail and Lifestyle products mainly due to the scalability of local manufacturers. In addition to this there is also the growing ease of logistics management when trading with partners in India which is a result of continuous investments by the Government and Private Players in developing India's infrastructure."
“Moreover", he added, "these factors have attracted newer geographies to import from India thus helping us diversify our partner base, thereby improving the overall robustness of India's export economy. While on one hand, it diversifies our risks, on the other hand it also opens new opportunities for local businesses to explore newer markets that can in turn lead to increased local manufacturing, greater innovation and better monetary prospects."
A further deep dive by DAMCO into specific states that contributed to the country's Retail and Lifestyle products exports in 2017 revealed that
• Rajasthan dominated India's export growth at 45%, followed by Uttar Pradesh at 21%
• Chennai, Andhra Pradesh and Gujarat dominated exports to Europe, while exports to North America were led by Uttar Pradesh and Rajasthan
These trends are broadly the result of the increasing support extended by State Governments to the local manufacturers to promote the 'Make in India' charter and further diversify their manufacturing interests in the geography.
Commenting on the opportunity in 2018, Vishal said, "Based on the favourable GDP growth being witnessed in North America and a continued recovery of Europe, we believe that the prospects for India's Retail and Lifestyle exports are fairly strong. With the sustained support of the Government, there is potential for the local Industry to realize healthy export growth in 2018 as well and we are excited to be a part of this growth story."