The country that is one of the so-called BRIC economies is recognized as being one of the major emerging national economies and it is currently the 18th largest export economy in the world.
India is not only able to satisfy it is own domestic demand but is also emerging as a net exporter to the rest of the world. Its export to the rest of the world is increasing substantially from year to year. India in FY 2017-2018 exported product worth of US dollars 416871 thousand while in FY 2016, the earning through export was 309727 thousand US dollars.
However, increase in India’s copper production has largely benefitted the Middle East as there are no major local suppliers. Countries of Middle East being the largest oil exporting nations are highly dependent on imports from suppliers in India. UAE accounts for 36% of the product followed by Saudi Arabia at 18%. Imports in Middle East have grown by 4 times compared to those of global copper consumption. As per a report, India exported INR 170260 worth of HVAC copper tubes particularly to Saudi Arabia.
The prices of copper in Indian market are highly dependent on the prices in London Metal Exchange, and prices fluctuate with changes in the balance between supply and demand and with general economic and financial conditions. Whereas demand is cyclical, supply tends to be relatively inelastic as mines need to spread heavy fixed costs over as high an output as possible.
An analysis shows that the major ports in India through which exports take place are Nhava Sheva Sea Port, Mundra Port and ICD Sabarmati Port. The rise in production of copper and development of these three ports has played a crucial role in making India a net exporter of copper and articles thereof.
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