- There has been a small decline in exports from India to Hong Kong in the first four months of the fiscal
- Due to strong performance of sectors like electronics, the export numbers are expected to improve
The intense protests in Hong Kong over the proposed extradition laws are unlikely to affect bilateral trade between India and the island nation which continues to be robust in items such as electronics and electrical appliances, the Hong Kong Trade Development Council has said at a recent industry meet.
Rajesh Bhagat, South Asia Consultant, Hong Kong Trade Development Council (HKTDC) informed that there has been a small decline in exports from India to Hong Kong in the first four months of the fiscal.
At the same time, he assured that the incident has more to do with global trade sentiments and India’s economic scenario rather than the protests. Due to strong performance of some sectors such as electronics, the numbers are however expected to improve, Bhagat added.
Bhagat said Hong Kong continued to be a safe city and the financial markets were working normally indicating there was no cause for concern.
A stable import scenario
As per data shared by HKTDC, Hong Kong was India’s fifth-largest export destination in the April-July 2019 period with exports dipping marginally by 5 per cent to $3.8 billion from $4 billion in the same period last year.
Imports from Hong Kong to India increased 2.2 per cent in the April-July 2019 period to $5.7 billion from $5.2 billion in the comparable months last year helping it maintain its position as the seventh-largest import destination for India.
Although in 2018-19 India’s exports to Hong Kong declined by 11 per cent to $13 billion, from $14.6 billion in the previous fiscal, it was mostly due to a decline in gems and jewellery trade, which was a global phenomenon, according to HKTDC.
However, a decline in gems and jewellery is now being compensated with an increase in export of telecommunication equipment and electronics. To support this further, as many as 40 Indian companies will be participating at the upcoming HKTDC Hong Kong Electronics Fair 2019 in October, added Bhagat.
