According to Damco, seventh largest freight forwarder of the world, India is outdoing China in export growth of locally made lifestyle and retail products. Danish shopping conglomerate AP Moller-Maersk Group’s transport and logistics arm shows the data that a compound annual growth rate (CAGR) of Indian exports of these products grew at 10% between 2013 and 2016, while China booked growth only 5%.
Klaus Rud Sejling, chief executive officer of Damco said, “Contrary to the bleakness of global trade, the future looks promising for India. The country is clearly well-poised to shape global trade, as global retailers are constantly looking for suppliers that are nimble enough to be able to adjust with troughs and peaks in the demand cycle, not only from an output point of view, but also when it comes to developing entirely new products and customising existing lines.”
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Sejling came in India for attending global leadership meet, as it was the first meeting under his leadership that held outside Copenhagen, Denmark. He is the same who took over as Damco’s global CEO in October 2016.
Global trade is encountering on many fronts. Container lines have been pushed that includes Hanjin of South Korea to bankruptcy and forced others in the industry for consolidating by lukewarm demand. Protectionist approach’s apprehensions to global trade have contains to the uncertainty under Donald Trump’s regime.
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Sejling said, “Year 2017 will see some organic growth, but maybe only around 2-3%.” Damco’s study for India, the key export drivers were bedding and bath products, textiles and home decor that accounted for 53% of the country’s total retail and lifestyle export volumes.
Damco’s CEO for India, Bangladesh and Sri Lanka- Vishal Sharma was present at last week interview and said, “In the past 24-36 months, we have seen a structural interest in global companies to move sourcing to India as manufacturing in China is becoming expensive. Also, as a way of having contingency and balancing supply chains, they are zeroing in on India.”
Sharma further said, “India-based manufacturers are benefiting significantly from access to quality raw materials that are competitively priced. Their improving agility combined with the efforts of the government is making India an increasingly attractive destination for global brands.”
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