Netherlands replaces China as the third largest export destination in the first 5 month of the 2022-23

Tags: Economy/Finance

Netherlands has emerged as the third largest export destination for India in the first five months (April-August) of the current fiscal year of 2022-23. The Netherlands has emerged as India’s third-largest export destination, ahead of China and Bangladesh. It has moved up two spots in the list of India’s top ten export destinations since 2021-22, due to a 106% increase in export from India until August this fiscal from a year before to $7.5 billion.

US and UAE top two export destinations

Meanwhile, the United States of America and the United Arab Emirates (UAE) continue to be the largest and second-largest export destinations, respectively, for India. The exports to the US climbed 18.3% until August to $35.2 billion, while those to the UAE shot up 27.3% to $13.8 billion.

Reason for drop in export to Bangladesh and China 

Bangladesh which is facing a severe foreign exchange (forex) shortage restricted imports to essential products so as to conserve its forex.

China is still battling the covid pandemic and many cities have been in lockdown affecting its economic activity. This has led to a sharp drop in demand from China. 

India’s exports to China contracted sharply by 35.6% until August this fiscal to $6.8 billion, while those to Bangladesh rose just 8.7% to $5.8 billion. In contrast, India’s merchandise exports to all destinations grew 19.5% in the first five months of this fiscal to $196.5 billion.

Boost in export to other countries led by Petroleum Products 

India’s exports to the Netherlands were driven mostly by a 238% jump in export of oil products until August this fiscal year to $3.67 billion. Export of chemicals ($513 million) and pharmaceuticals ($219 million) also increased during the period.

Meanwhile, exports to Indonesia jumped 43% to $4.8 billion. The supplies to this Asean country were dominated by petroleum products, which jumped 144% in the year up to August this fiscal to $1.8 billion. The other key products were cereals, sugar and chemicals.  

Brazil, which occupied the 21st spot in 2021-22, is now India’s 8th biggest export market. The export to Brazil increased by 70.9% in the first five months of this fiscal year to $4.7 billion. The exports were driven by a 299% jump in supplies of petroleum products to $2.3 billion, followed by those of chemicals ($684 million) and automobiles, auto parts and allied products ($233 million).