BILATERAL TRADE, INVESTMENT FIGURES AND TRENDS (Jan-Dec 2016)
(ii)Top 10 items of Export to India
(iv) Top 10 items of Import from India
(vi) Top 5 competitors of India’s top 5 exports
(vii)Trade Analysis and Significant Trends
Austrian trade with India continues to experience a very positive trend and speed up at a much more dynamic speed than Austria’s overall foreign trade in both imports and exports. The results for the January-December 2016 mark the third consecutive year in which India-Austria trade entered a significant recovery path after having slowed down in the years following the economic crisis until 2014.
In 2016, exports to India registered 11.2% growth and stood at nominal EUR 779.42 million euros while imports from India increased by 9.1% y-o-y with nominal EUR 775.96 million euros. Differently from the two previous years, when a trade surplus in favor of India had been registered, 2016 results leave a trade surplus of EUR 3.45 million euros in favor of Austria.
The major import sectors remain the same, being Article of Apparel and Clothing, Textiles, Articles of Leather, as well as Footwear the most important chunk of Austria’s imports from India, accounting altogether for about 38% of Austria’s total imports from India. Electrical Machinery (10.1% of total imports), Vehicles & Railway Technology (8.0%) and Machinery & Mechanical Appliances (7.3%) follow as the top three import items in the technology sectors. Moreover, the three item groups combined represent the second most important chunk of Austria’s import from India amounting for about 25.4% of total imports. As far as highlights in the trade trends, it is important to notice the continuous speedy growth in imports of Organic Chemicals, which amounted for 5.5% of Austria’s total import from India in the same period in 2014 and now stands at 7.1% of total imports.
On the exports side, in comparison to Austria’s total exports to the world, the figures indicate a considerable positive trend in relation to India. Austria’s major exports to India continue to be Machinery & Mechanical Appliances (21% of total exports), Iron & Steel (15.2%) and Electrical Machinery (12.4%). Together, their current share account for about virtually half of total exports, being Iron & Steel responsible for a considerable chunk of this value with continuous considerable growth by 46.8% y-o-y (2015:79.1%), compensating for the smaller changes in volume of exports in the two other item groups. Other significant fluctuations in the exports side are registered for Railway & Parts Thereof with increase by 73.4% (2015:269.7%), now amounting for 4.5% of total exports as well as Pharmaceuticals, with increase by 144.4% (2015: 206.4%), now accounting for 3.5% of total exports to India. These last two item groups have been showing steady growth in the last two years and the positive trend is clear.
In general, it is possible to notice that there is a very positive trend in Austria’s trade with India. Nevertheless, the scope is known to be greater, specially on the Indian exports side, since the known demand of technology items imported by Austria is not yet being tapped significantly by Indian products. However, as India climbs up the value chain with its massive manufacturing empowerement, it is hoped that significant changes in the nature of trade between the two countries will take place, in which manufatured items shall account for a bigger chunk of India-Austria trade.
According to final data up to 2016 disclosed by the Austrian National Bank, India has received a cumulative direct investment amounting 456 million EUR from Austria. (+80 million in comparion to 2015)
According to the same source, India has a cumulative direct investment amounting 136 million EUR in Austria as of the same period. (+1 million in comparison to 2015)
No further detailed data is available. (Last updated on April, 2017)