India-Austria Bilateral Foreign Trade Volume Increases to EUR 1.40 Billion

Published: April 20, 2016; 18:00 · (FriedlNews)

Last year was a very good year for India-Austria foreign trade. Experiencing a much faster growth rate than Austria’s overall trade, Austria imported items amounting to EUR 702 million from India and exported a volume amounting EUR 700 million to India.

2015 India-Austria Bilateral Trade Results: Best results in Years / Picture: © www.crossed-flag-pins.com

Having experienced virtually continuous growth in the 10-year period between 2002-2011, Austria’s trade with India suffered a steep decline in 2012, mainly due to a considerable deacceleration of Indian imports from Austria by -23.4%, while exports decreased by -0.9% only in that year.

After these double negative rates of growth in 2012, bilateral trade recovered in 2013, registering 3.5% growth in exports to Austria and 3.6% increase in imports from Austria.

Trade then started to set itself off inversely throughout the whole of 2014, where Indian imports decreased by -8.3% and exports to Austria grew by 9,0% in that year.

Despite the high dynamics in trade volume fluctuations in the last years, India-Austria remained at considerably stable pace with an overall positive trend when compared to trade figures resgistered by Austria in general as well as with other of its trade partners, which have been more severly hit by the two major financial crises in the last decade.

After historial data analysis, it is impressive to note that India-Austria bilateral trade grew from mere EUR 338 million in 2001 (EUR 201 million Indian imports / EUR 137 million Indian Exports) to a striking EUR 1.40 billion bilateral trade mark in 2015, which represents growth by 413.7% in the last 15 years. In comparison, Austria’s overall foreign trade for the same period registered 84.54% growth.

2015 bilateral trade results reflect the intense commitment India and Austria have been showing in intensifying not only its trade, but also its bilateral investment and technology exchange. It is also a clear trend-setter in what refers to Austria’s response to India’s new business environment set off by the Make in India campaign.

On the Indian Exports/Austrian Imports side, Articles of Apparel and Clothing, Textiles, Articles of Leather, as well as Footwear remain the most active industrial sectors accounting for about 33% of Austria’s total imports from India. The biggest highlight to be observed on the Indian exports side is the item group Electrical Machinery, though.

The sector experienced 57.1% growth in 2015, jumping from 5th most important item group to the very top of the list, with an export volume of EUR 71.49 million, accounting for 10.2% of total Indian exports. This result may suggest the beginning of a significant change in the structure of Indian exports to Austria, as India moves up the value-chain and becomes an ever more important source of finished items and technology, and not only raw and unfinished products. On the negative side, the only considerable slowdown observed is attributed to the Pharmaceuticals industry, which left the top-10 list after experiencing -8.7% decrease in trade in 2015, representing now only 1.6% of total Indian exports, in comparison to its 3.1% relative mark in 2014.

On the Indian Imports/Austrian Exports side, the major jump is registered by Iron and Steel, which has increased by massive 135.2%, now standing as 3rd most important item group representing 11.6% of India’s imports from Austria, in comparison to its 5.8% significance level and 5th spot in the list in the previous year.

All other major item groups also experienced considerable growth, with exception of the Railway sector, which registered -43.4% decrease in trade, which can be explained due to an extraordinary 167.6% jump in the previous year, probably accounting for some single punctual transaction.

The analysis of the items imported from Austria to India leads to the reflection that a rapid acceleration of particularly technology-intense items is being registered. This aligns with India’s current industrialization agenda, with its high demands of technology and with Austria’s readiness to offer such items.

Ultimately, it is also important to note that as much as all these results positive trends and perspectives for India-Austria bilateral trade, only the analysis of time series dataset can confirm the hypothesis. Further observation throughout the year 2016 might allow the endorsement of all these conclusions very soon.

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