China, UAE to be India’s top export markets: HSBC
September 17, 2014, 10:33 am

By 2030, China and India will be the top buyers of UAE’s petroleum products, says HSBC [Xinhua]

“Indian exports to the UAE will grow rapidly due to the country’s role as a trading hub. Our forecast suggests that by 2030, the US is likely to slip into third position, with UAE and China emerging as India’s main export markets,” the report said.

HSBC’s India Trade Forecast Report said by 2030, China and India will be the top buyers of UAE’s petroleum products, comprising 40 per cent of total export growth. China and India are Asia’s largest and third largest oil consumers respectively.

India’s oil demand has shown steady growth through July at an average of 3 per cent, or 101,000 barrels a day. China’s oil demand has declined at an average of 0.6 per cent, or 62,000 barrel a day, in the same period, says Barclays.

“We still expect petroleum products to remain both the largest category of total exports and the largest contributor to total export growth up to 2030,” said Tim Evans, Regional Head of Global Trade and Receivables Finance.

“It (petroleum products) will account for over 40 per cent of total export growth over this forecast horizon. So it is no surprise to see energy hungry countries such as India and China on top of the UAE’s export list,” said Evans.

India has fallen behind China and the US in the list of UAE’s top trade partners as trade between the UAE and India plummeted 21 per cent during the 2013-14 financial year after India increased its gold import tax by five times.

The decreased trade saw India lose its position as the UAE’s top trading partner, which it had held for the past several years.

Wednesday’s HSBC Trade Forecast report said India would soon return to the top.

India’s rising middle-class is expected to create a larger demand for consumer goods from abroad, strengthening ties with its links to major oil producer, UAE, said the HSBC report on Wednesday.

Source: Agencies