Slide 1

• There have been 4 instances of negative exports growth YoY

THE PRE-GFC PERIOD:
• Looking at the export growth between 2005 and 2008, it is a
case of robust export growth, which has been in sync with
global economic development at that time
• The Transport Equipment industry is one that is highly
correlated with economic growth
THE POST-GFC PERIOD:
• The TE industry had started witnessing steady improvement
over the years, but the downfall came post 2012 again, owing
to growth stagnation in western countries

Slide 2
•
• Pre-Global Financial Crisis, USA, Japan & Germany were the
biggest exporters in this segment with China in a distant 4th
position.
• But the growth of China has been strong from the year 2005 till
the year 2015 with the year 2012 seeing a mellow growth.
• China witnessed a CAGR of 15.4% from the year 2005 to 2015
• Post GFC, China took the place of Japan as Top 3 Value Added
exporters of the world for Transport Equipment

Slide 3

→ In terms of Gross Exports of Transport Equipment, the Top 3

countries have remained the same from 2005 to the year 2015.
 → These 3 countries have been USA, Germany and Japan
→ But Korea and China both have witnessed a mammoth growth
in this area
→ China CAGR 2005-2015 = 15.05%
→ Korea CAGR 2005-2015 = 7.77%

Slide 4

→ USA, Germany and Canada were Top 3 countries in terms of

Gross Importers till the year 2006
→ Then for the year 2007, UK replaced Canada as the 3rd biggest
importer.
→ From 2008 to 2010, France replaced Britain as the 3rd biggest
importer.
→ Post that, China again saw a huge rise in it’s imports and even
overtook Germany’s number 2 spot.
→ But USA remain the biggest gross importer of Transport
Equipment from the year 2005 to 2015 by a big margin.

Slide 5

Why India lags the top 3 players?

Exports are driven by –
• Manufacturing capability of a nation
• Quality of equipment
• High technological and R&D advancements
• Cost efficiency in production
Considering these factors, India imports only a fraction of what the
top 3 markets import.
 Slide 6

Why India lags the top 3 players?

Demand is driven by –
• Employment and interest rates, 
• Growth in consumer income,
• Military budgets,
• Overall economic climate
Considering these factors, India imports only a fraction of
what the top 3 markets import.