05
Sep
11

India Imports Up

If there is any doubt why India is entering into expansion mode with their ports, then last weeks numbers of gross imports will help put that into perspective. Asia’s third largest economy cracked the scales with an increase of 31%  in the April/May, compared to the same period last year.

Container Ship

Imports Soar in April May

Crude oil imports continued to increase along with edible oil and pulses (peas, beans and lentils), according to official figures. India imports close to four fifths of its oil. According to country’s Commerce ministry sources, India imported 13.58 million metric tons of oil in July, up by 2.6 percent that is up by 3.13 million barrels a day.

Large developing nations clamoring for the black gold could drive up prices and slow down development but I argue whether or not Middle Eastern or other big exporters of oil would let prices to too high, in favor of increased economic development.

The country’s imports of pulses and edible oil, went up by 24.7% in the April-May period this year. India’s import of pulses, shot up by 38.6%

Items such as food grains, automobiles, milk and beverages fall in the sensitive category and the import of these goods is monitored by the government to see if there is any adverse impact on the domestic industry.

During the first two months of the current fiscal year, the import of items such as alcoholic beverages and spices also increased by 60.4% and 30.5%, respectively. However, imports of food grains, fruits and vegetables, tea and Coffee contracted by 81.3%, 1.9% and 42.6%.

Coffee Drinkers are Getting Their’s Local

Since 1950 the total area of planted coffee in India has exploded. For the Arabica bean it has increased over 300% and for the Robusta bean, it has grown over 1000%. More and more young Indians are taking to the drink than ever before. With a very low average age (65% of the population is under 35 and it’s expected that the average age in 2020 will be 29 years old) in India and a more affluent generation coming onto the scene, many of them are taking to the cafe’s to relax, carry on business, or just get away.

Demand is Calling

Last month, we wrote on the blog about a new planned investment of $60 billion to expand and renovate Indian ports. This investment is part of a  bigger $1 trillion dollar initiative aimed at bringing the ports, roads and infrastructure in the country up to speed by the year 2020.

Leif Eskesen, of economist at HSBC Holdings Plc said,“If there isn’t enough capacity, you lose time and it adds to cost.” India is working on fixing this. An industrial expansion and high food prices, resulting from the combined effects of the weak 2009 monsoon season and inefficiencies in the government’s food distribution system, fueled inflation which peaked at about 11% in the first half fo 2010, but has gradually decreased to single digits following a series of central bank interest rate hikes.

There’s a lot that can be done with a trillion dollars. It looks like India s up to the task. All eyes are on Asia right now. India and China have a lion’s share of the focus but there are many other emerging markets that are pushing container demand around our region. At Pacific Tycoon, we supply them with the necessary containers to transport the cargo. Contact us to see how you can invest in shipping container, earn guaranteed money, and free up a portion of your volatile stock portfolio for a safer alternative.

Image:ProvidenceEdu

Source: IndiaCoffee, CommodityOnline

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Gain unearned income. Own shipping containers and lease them to us. We contract with companies who need to ship materials.

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