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Exports from India and Vietnam expected to do well in 2016: UN report

04 Nov 2015 Evaluate

Giving a ray of hope and morale boost to the ailing Indian exports, United Nations in its latest 'Asia-Pacific Trade and Investment Report 2015' has said that exports from India and Vietnam are expected to relatively do well in 2016 as their shipments are largely directed to advanced economies in Europe and North America that are expected to expand in the coming year.

It said the regional trade and investment flows in Asia and the Pacific is decelerating as the economies in the region adjust to cyclical and structural changes resulting from the global economic downturn and the expected reduction in China’s growth rate. Though, it lauded the relatively strong performance of the Indian economy and pointed out that it was unlikely to compensate for sluggish performances elsewhere as India’s market remains only “weakly and selectively’’ integrated with the Asia-Pacific region overall. But said that India still has a long way to go to match China’s role in the region’s trade and investment flows. India’s success will depend on its ability to accelerate the implementation of necessary structural reforms in order to improve its business and investment environment.

The report which emphasises that countries need to adjust to both cyclical and structural changes, especially in light of the global slowdown and an expected reduction in China’s growth rate, said that the Asia-Pacific region, which includes India, China, Japan, Russia, and the ASEAN nations, among others, will hold its position as the largest trading region in the world despite the lowering of trade growth prospects due to global slowdown.

Despite the slow pace, the report said the Asia-Pacific region stands out for its significant and sustained achievements in leveraging trade and investment flows for development. United Nations further in its report said that Countries, heavily dependent on China for their exports, however, will not do well, due to the slowdown in the country’s economy. Asia and the Pacific accounted for nearly 40 per cent of global exports and imports in 2014, while intra-regional imports remained at a little over 50 per cent of the total in 2014, with intra-regional exports at 54 per cent.

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