STEVAN NIKČEVIĆ State Secretary, Ministry of Trade, Tourism and Telecommunications of Serbia
INTERVIEW
STRONG POTENTIAL FOR FURTHER DEVELOPMENT Serbia should seriously consider the possibility of joint appearance on the Indian market together with other regional countries
T
he trading between Serbia and India is of a relatively small volume with a pronounced deficit on our side. In the last ten years, the biggest export to India was recorded in 2007, in the amount of $20.9 million, and it has been declining ever since. The lowest export figures were recorded in 2012; only $4.9 million.
What are the current trends in trading with India? In 2015, the total trade amounted to
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Focus
INDIA 2016
$145.6 million. Serbia exported $5.6 million worth of goods and services to India, which is a 20% drop relative to 2014, and imported $140 million worth of goods and services from India. There was no change recorded with import value. In the period between January and May 2016, the overall trade stood at $57.6 million. Although relatively small, our export in the amount of $4 million, is 36.3% higher than the one in 2015. If this growing trend continues, we can expect to accomplish the trade results from 2010 and 2014. On the other hand, although Serbia’s import from India was reduced by 8.4%, it still remains several times higher than the export and it stands at $53.6 million. Serbia mostly exports cigarettes, derivatives of nitro or nitroso groups, air conditioners, acetic acid, pipe equipment and plastic hoses to India, and mostly imports aluminum, medication, heterocyclic compounds and coffee.
Which Serbian products are the most popular in India and how much can demand for these products contribute to reduction of the deficit in the trade between the two countries? Based on the existing cooperation and bearing in mind the needs of the Indian market and our export capacity, Serbia can increase its export to include agricultural and food products, agricultural machinery, automobile industry products including car parts, as well as information-communication technology and rubber products. Also, we can export our pharmaceuticals and military industry products. We should underline that all South-East European countries have a deficit in trading with India. Scarce supply and mutual competition are the main obstacles in boosting the economic cooperation with India. Bearing in mind that India is a market that has over a billion consumers and that its economy is rapidly expanding, Serbia