India’s performance in UK services exports to BRIC nations
UK services imports from BRIC nations
India’s performance in UK services imports from BRIC nations
UK services trade with BRIC nations
India’s performance in UK services trade with BRIC nations
UK Balance of Trade (services) with BRIC nations
India’s performance in UK Balance of Trade (services) with BRIC nations
Sector breakup of UK services exports to BRIC nations
India’s performance in major services exports from UK to BRIC nations
Sector breakup of UK services imports from BRIC nations
India’s performance in major services imports by UK from BRIC nations
Ranks of BRIC nations as UK’s services trade partner
UKs service trade with India compared with other BRIC countries makes a very interesting analysis. The significance of this analysis is the fact that these countries form a major economic block, which is likely to eclipse the G-7 economies by 2050. Indias growing clout as service exporter to the rest of the world and UKs dominance as traditional service exporter makes the trade pattern even more attention worthy.
Amongst all four BRIC nations India tops the services trade with the UK. In the year 2008 UKs total services trade with India was GBP 4056mn ahead of China (GBP 3743 mn), Russia (GBP 3290 mn) with Brazil in the last position grossing only GBP 942mn. UKs services trade with India also reached an all time high in 2008 growing steadily at 16.2% CAGR since the year 2000. Services trade with other BRIC nations has also grown at a steady pace with China measuring 22.4% CAGR; Russia 23.6% CAGR and Brazil 7.6% CAGR for the same time period.
UKs services exports to India has slightly different characteristics. For the UK, India is the third largest services export market of the four BRIC nations and China makes the top spot. China has led the British services export growth to BRIC countries. Chinas services imports from the UK has grown very quickly in last 2 years. The fact that growth rate in China was unlike that of witnessed in other parts of the world in 2007 & 08, registering more than 50% growth for services import from UK. India which was the leading importer from UK among BRIC countries in 2000 is now at 3rd spot.
In the reverse direction, except Brazil, all the other BRIC countries registered more than 15% growth in exports of services to the UK from the years 2007 to 2008. India maintained its top position as the largest exporter of services to the UK amongst BRIC nations. China and Russia take positions of 2nd and 3rd largest exporters of services with Brazil again in the last position.
UKs overall trade with Brazil has a long way to go as Brazil does not even figure in the top 25 services trade partners. Similarly Indias position in UKs overall services trade is also not as service export partner to UK dropped from 21st to 24th in 2008.Though this drop was very nominal compared to Russia which moved from 18th to 29th position, a drop of 11 positions in 2008 from 2007. The only BRIC country to improve its position was China that moved up 6 notches from 23rd to 17th in 2008. Indias position as an import partner of UK went up by one notch position 12. This improvement is very much in line with performance of other BRIC nations (except Brazil). Chinas position moved up 6 notches from 26th to 20th and, that of Russia moved up by 2 notches to 26th.
A look at the UKs Balance of Trade (services) with BRIC nations shows a phenomenal 17.5% growth (CAGR) in favour of India and a staggering 29% growth (CAGR) with China in favour of the UK. The noteworthy difference here is that India is the only BRIC country to have positive BOT (services) with UK. The BOT (services) of UK with India decreased in 2008, while it increased for China & Brazil. While lowest ever BOT (services) for India UK was observed in 2008, the trade gap narrowed most in 2006 for India UK. This was the only year, when UK service export to India exceeded the import from India.
Further analysis into the sectors the UK-BRIC services trade is heavily skewed towards Transport and Travel sectors. Contrary to popular belief the Financial Services industry has only getting a modest success in BRIC countries. This is a huge problem for the UK as it shows much business it is actually doing with high growth markets in BRIC nations, or even a deeper problem of truly being able to understand countries outside of Europe and North America. Russia is the only country where UK has had great success in Financial Services sector. This is largely as a result a large number of Russian companies in the metals, mining and natural resources raising capital through the London markets.
Overall these facts and figures paint a very promising picture for Britain in the light of current state of affairs of the Eurozone. The analysis suggests that the UK has a huge scope to increase its services trade with high growth BRIC markets.