Channel: Trade

19 June, 2010
Trade in Silk
Tables & Graphs
 
The total trade between India and the UK in Silk and articles thereof (HS Code - 50) has increased at a lowly compound annual growth rate (CAGR) of 1.77% over the past decade. The total trade between these two nations was GBP 14.60m in the year 2000. It touched an all time high of GBP 21.61m during the recession i.e. 2008, in value terms though it grew by a mere 2.24% YOY basis. The trade between these two nations got bashing due to the recession as the trade dropped to the aforementioned growth rate from the last year’s growth rate of 10.80%. This corridor saw the highest growth rate of 22.26% during the last decade in the year 2006. The total trade in this sector showed negative trend for the first three consecutive years of this decade when it slipped by 0.21%, 4.42 and 3.22%. The trade between these two nations picked up the pace from 2003 onwards as it showed the positive growth rate till 2008. It again dropped by a significant 20.85% in the year 2009. This corridor has been dominated by India for the whole of this decade. UK’s exports to India in Silk and articles thereof (HS Code - 50) was a mere GBP 0.16m in 2000 whereas it was GBP 14.43m the other way round. UK saw the maximum trade deficit in the recession year i.e. 2008 at GBP 21.40m. UK imported maximum from India during this period which can be attributed to the lower cost in India.

Quick Facts

Trade Growth and Declines

  • The exports of Silk and articles thereof (HS Code - 50) from the UK to India in the year 2009 stands at GBP 0.12m while that of Import from India to the UK was at GBP 16.98m.
  • UK’s Import from India has seen a percentage drop of 4.77, 3.16 and 21.03 in the year 2002, 2003, and 2009 respectively.
  • UK’s imports from India were the highest in value terms during the recession period. However it registered a significant drop in the YOY growth rate from 10.91% in 2007 to a mere 1.91% in 2008.
  • Miraculously, UK’s export to India got tripled during the recession period i.e. in 2008 when it increased by 203%, thanks to its lower base, to GBP 0.1m from GBP 0.03m in the year 2007.
  • UK’s export to India saw the steepest fall when it got reduced to one fifth of its value to GBP 0.03m in the year 2001.
  • UK’s export to India slipped at a CAGR of 3.27% over the last decade.
  • Whereas, the UK’s import from India grew slowly but steadily at a CAGR of 1.82%.

Share of trade
  •  UK’s total import of Silk and articles thereof from the world stood at GBP 38.16m in the year 2009. It witnessed a significant drop of more than 20% over the last year.
  • UK’s import from the world was stable during the recession when it grew by 1.98%. This was totally in sync with what India witnessed as it also saw a stable growth rate of 1.91%. Both, India and the world, behaved identically.
  • India has always held a huge pie in the UK’s total import from the world. India’s share in the UK’s Import started with a mammoth 29.80% in the year 2000 which went only to see a rapid upsurge in the share. India’s share was the highest in the year 2007 at 44.97%, which got stabilized in later years. India alone imports half of what UK imports from the world.
  • UK’s total export of Silk and articles thereof to the world stood at GBP 30.55m in the year 2009.
  • UK’s export to the world saw the largest decline in the growth rate i.e. 24.09% in the year 2009 when it slipped from trade value of GBP 40.24m.
  • UK has never exported much to India during the last decade. India’s share in the UK’s total export has always remained abysmal and has never touched even 1%.
  • India’s share in the UK’s total exports was the highest in the year 2000 at 0.60% which kept on oscillating over the whole decade.
  • UK’s export of Silk and articles thereof (HS Code - 50) to the world grew at a CAGR of 1.27%, way higher than the CAGR, -0.327%, of the UK’s export to India. This shows that the comparative advantage of the UK’s exporter with respect to India has reduced over time.
  • UK’s import of Silk and articles thereof (HS Code - 50) from the world decreased at a CAGR of 2.61%, contrary to the UK’s import from India which grew at a positive CAGR of 1.82%. This shows that the comparative advantage of the India’s exporter with respect to the UK has grown over time.
 

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