Exports from India to China were down 30 per cent year-on-year in the first half of the year 2012-13, according to China Import Data, thus resulting in further widening of trade imbalance between the two countries in the favor of China .The trade deficit which stood at $1.08 billion in year 2001-02 has crossed $40 billion mark in year 2012-13.
The bilateral trade has declined by 7.2 % after the first six months of the year 2012-13 to $31.68 billion and stood at around 67.83 billion USD. Primary reason is the decrease in Indian exports to China which mainly comprised iron ore and cotton, fuelling the downfall.
Indian imports from China would cross $57 billion in fiscal 2012-13 according to China Export Data but the Exports to china may not exceed 14 billion USD. China has the largest share of 11 percent in the total Indian imports of merchandise. The major products imported from China are Machinery, electronics and precious pearls. Major products exported to China are transport equipments, petroleum products, machinery, drugs & Pharceuticals.
As a part of Chinese Premier Li Keqiang’s recent visit to India, a series of memorandum of understandings have been signed between the two countries. MOU’s were signed on pharmaceuticals, buffalo meat and fisheries. India anticipates bridging the trade deficit as a result of singing these Mou’s in its favor as there were trade barriers in exports of drugs and pharmaceuticals to China. Even buffalo meat was not allowed to be exported from India to China till now.
The recent series of weakening of rupee would also have a deep impact on the widening the current account deficit of India as Indian imports would become dearer. China on other hand will be happy with its depreciating currency as it exports more than it Imports. Depreciating Chinese currency makes its goods cheaper in the international market.
Nhava sheva port, which is also called JNPT port (Jawaharlal Lal Nehru Port Trust), is located near Navi Mumbai. It is constructed over a vast 10 square kilometers or around 2,500 acres; One of the key reasons for developing this port was to relieve pressure on Old Bombay port called Bombay port trust. Jawaharlal Nehru Port Trust is an autonomous corporation fully owned by the Government of India.
JNPT port, which is the largest port of India, handles about 65% of India’s total container traffic of India. It handled around 64.32 million tones of total cargo during financial year 2011-11. Out of 64.32 million tones, 32.79 and 30.18 million tones were attributed to Import and export respectively.
According to JNPT Export Data , the major exports from Nhavasheva port are Readymade and knitted garments, sports goods, Home textile and floor coverings, textile machinery, frozen meat products, chemicals, and pharmaceutical intermediates and finished pharmaceutical formulations.
The main imports on JNPT port are chemicals, plant & machinery, plastic articles, Electrical goods, vegetable oils, aluminum products, ferrous and non-ferrous metals as per the JNPT Import Data. Most of the cargo traffic handled by JNPT port originates from or is destined for western and northern India like the states of Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, Delhi, Punjab and Haryana etc.
Import Export Data JNPT is the most reliable source for analyzing the macro and well as micro level trends of Export and Import of merchandise from Nhave shava port.