New Delhi: UAE has emerged as the top export destination for India during 2012, while the country's shipments to the US are declining, a study has said.
Although the US has maintained its high position in India's top 10 export destinations over the years, its share in the country's total exports has registered a slip from about 21 percent in 2001 to 17 percent in 2006 to 12 percent in 2012, industry body PHDCCI said in the study.
Whereas, UAE's contribution has increased to 12 percent in 2012 from about 6 percent in 2001, it said. "UAE has emerged as the top export destination," it said.
Japan's position has been worsening in the list of major export destinations of India, it said, adding Japan is now no more features amongst the top 10 destinations.
Similarly, the UK has slipped from the fourth position in 2001 to seventh position in 2012. Germany and Belgium, which were at eighth position in 2001, stood at ninth position in 2012, it said.
It said China and Singapore, which did not even feature in the top ten export destinations of India in 2001, have now captured the third and fourth places, it said.
While China contributes six percent, Singapore accounts for 5.5 percent in 2012.
It said the rapid diversification of India's export destinations is encouraging. The widely spreading export markets can be noted from the narrowing dependence on selected economies for exports.
"The share captured by the top ten exports destinations have been narrowing from 57.7 percent in 2001, to 57.3 percent in 2006 to 51.6 percent in 2012, indicates the increasing share of a larger number of economies in India's exports market," the study said.
India has been rapidly diversifying its exports markets from the traditional partners -- the US and Europe -- towards emerging and developing economies.
"This has played a crucial role in cushioning India's exports growth during the recent years which has remained fairly steady despite global economic slowdown," it said.
However, it said the diversification of exports markets may not work for longer as the contagion of Euro zone crisis is spreading.
The study added that to increase the growth rate of exports, the government should speed the process of concluding the ongoing talks for India-EU free trade agreement (FTAs).
It said that non-tariff measures should be addressed both through FTAs as well as WTO negotiations.