UK’s Beverages, spirits and vinegar’s imports and exports with the World and India's relative position
UK’s Beverages, spirits and vinegar’s import from India
UK’s Beverages, spirits and vinegar’s export to India
The total trade between India and the UK in Beverages, spirits and vinegar (HS Code - 22) has increased at a healthy compound annual growth rate (CAGR) of 14.41% over the past decade. The total trade between these two nations was GBP 9.06m in the year 2000. The highest total trade between these two nations was at GBP 36.51m in the year 2007, before recession, when it grew by 28.66% over the last year. Recession hit this sector badly as it registered only negative growth post recession. The total trade slid by -1.92% and -15.05% in years 2008 and 2009 respectively.
This corridor saw the highest growth rate of 81.84% during the last decade in the year 2005; can be attributed to the lower YOY growth rate of 3.24% during the last year. The zigzag nature of the growth rate continued when it fell by 1% in the year 2006. 2003 and 2007 saw the growth rate of nearly 28%, double the average CAGR over the last decade.
This corridor has been dominated by the UK for the whole of this decade. UKs import from India in Beverages, spirits and vinegar (HS Code - 22) was a mere GBP 0.42m in 2000 whereas it was GBP 8.63m the other way round. Contribution of UKs export to India of the total trade over the last decade was at a staggering 97.02%. UK has witnessed the ever increasing surplus each year. The deficit for India was the highest at GBP 34.90m in the year 2007, pre recession. Thereafter, Indias deficit took a downward turn for the subsequent years.
- The exports of Beverages, spirits and vinegar (HS Code - 22) from the UK to India in the year 2009 stands at GBP 29.52m while that of Import from India to the UK was at a lowly GBP 0.91m, 3% of the former.
- UKs Import from India has seen a zigzag pattern over the last year. Stability in imports from India has been the concern.
- UKs import from India registered the lowest growth rate of 53.76% in the year 2007. Similar was the case in the year 2001 when it went down in real terms by 52.67%.
- UKs import from India registered whopping growth rates of 240.86% and 377.97% in the years 2002 and 2006 respectively.
- Recession dint hit the UKs import from India instead it supported the cause as the slid in the YOY growth rate curbed when it declined by a mere 5.01% in 2008 as compared to a drop of more than 50% in the previous year. It showed solidity in the following recession hit year, 2009, when it grew by a decent 18.95%.
- Reason can be attributed to the cheap cost of import from India.
- UKs import from India grew at a CAGR of 8.82%.
- UKs export to India increased handsomely by 83.47% in the year 2005.
- The export to India got slowed in the years 2002, 2004 and 2006 when they grew by single digits for the first two years and dropped in the value terms in the year 2006.
- Recession hit UKs export to India as the trade slid by 1.85% and 15.79% in the years 2008 and 2009 respectively
- UKs export to India grew at a CAGR of 14.64%, mush faster than that of import from India, over the last decade.
- UKs total import of Beverages, spirits and vinegar from the world stood at GBP 4.591b in the year 2009. It witnessed a below average growth rate of 2.52% over the last year.
- UKs import from the world hold its fort strongly during recession as it grew by a 7.9% in the year 2008, the second highest percentage YOY growth rate registered in the last decade, followed by a modest 2.52% in 2009. On the contrary, India performed exactly opposite as it registered a slid in the growth rate i.e. -5.01% in 2008 and 18.95% increase in 2009.
- Indias share in the UKs total import from the world has always been insignificant over the whole decade. It hovered around unnoticeable 0.01% to 0.04%. There exists immense scope for Indias exporting houses.
- UKs total export of Beverages, spirits and vinegar to the world stood at GBP 4.995b in the year 2009, when it grew by 7.63%.
- UKs export to the world saw the largest decline in the growth rate i.e. -3.95% in the year 2004 when it slipped from trade value of GBP 3.575b.
- UKs export to the world dint shook at all. Instead it saw its highest growth rate of the last decade, 10.93%, in the year 2008. Year 2009 too saw a decent growth rate of 7.63%. On the contrary, UKs export to India showed a negative growth rate of -1.85% in 2008. This went on to -15.79% in the following year. UK exported lesser to India as compared to what it exported to the world.
- Indias share in the UKs export has started from 0.28% in the year 2000. It grew steadily with time and reached the pinnacle, 0.85%, pre recession in the year 2007.
- The share dipped after recession in consecutive years but has arrested the slid in the share in the current year.
- UKs export of Beverages, spirits and vinegar (HS Code - 22) to the world grew at a CAGR of 5.35%; way lower than the CAGR, 14.64%, of the UKs export to India. This shows that the comparative advantage of the UKs exporter with respect to India has increased over time.
- UKs import of Beverages, spirits and vinegar (HS Code - 22) from the world increased at a CAGR of 5.93%, whereas the UKs import from India grew at slightly higher CAGR of 8.82%. This can be attributed to the higher volumes in case of the world and lower volumes of India. Huge scope in the UK beacons Indian exporters.