Page 55 - Chemexcil NEWS August - September 2017 for web
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almost 80 per cent of generics are sourced from dominance over the labour intensive, low-end
India. However, the market share has stagnated manufacturing space in the near future, which is
while growth in value terms have slowed down", being eyed by the Indian industry.
P V Appaji, past Executive Director at Pharmexil
said. A changing consumer pattern has also moulded
a greater demand for consumer goods in China
This is mainly due to price erosion, he added. where overall demand in the first half of 2017
was driven by solid growth in industry (up 6.4 per
Not geared for China either cent) and even stronger growth in services (up 7.7
per cent).
On the other hand, India is ill-equipped to grow
its exports to China. While its northern neighbour "We are looking to harness our strengths in labour
is its largest trading partner, only 3.68 per cent of intensive sectors where India enjoys significant
India's exports find their way to China. advantage over other developing nations," a
Commerce Ministry official said under conditions
Apart from finding it difficult to bridge the of anonymity.
whopping $51-billion trade deficit, India is also
looking to upgrade its current basket of exports Currently, the top 5 export categories to China
to China. are all input products. These are used by China to
manufacture costlier goods which it ships abroad,
Raw materials like cotton, iron ore and copper - often back to India.
long a hallmark of Indian exports to neighboring
China - has come under increased scrutiny as These, along with other raw materials like iron and
both government as well as exporters try to shift iron ores, constitutes for more than 70 per cent of
exports towards value added products in a bid to India's exports to China, Ajay Sahai, Federation of
cap growing trade deficit. Indian Exports Organisations said.
While previous Commerce and Industry Minister These are subject to volatile global commodity
Nirmala Sitharaman had earlier said that export prices and should be periodically swapped with
focus should shift from raw materials, her Ministry products higher in the value chain, a Delhi based
has identified key sectors such as hardware, trade expert said.
electronics, pharmaceuticals, textiles and auto
components, to realign and boost exports. (Source: http://www.business-standard.com/article/economy-
policy/indian-exports-may-not-gain-much-from-rise-in-global-
With a burgeoning middle class and rising trade-117092200935_1.html dated 22nd Sept-2017)
labour prices, China is expected to relinquish its
35. GOVT WILL ANNOUNCE ADDITIONAL MEASURES TO BOOST
ECONOMIC GROWTH: ARUN JAITLEY
The finance minister said the government has
taken note of all economic indicators and will
take additional moves; he said he would consult
the prime minister before any announcement.
Finance minister Arun Jaitley said his ministry
would soon announce measures to revive
economic growth that has decelerated to the
slowest pace in three years.
53 August-September-2017
