A UN report found India's creative goods exports nearly tripled from USD 7.4 billion in 2005 to USD 20.2 billion in 2014. India now ranks among the world's leading exporters of such products in the top 10 developing economies, says the report.
Creative goods exports: India among the world's leading exporters
A United Nations Conference on Trade and Development (UNCTAD) report says India's creative goods exports nearly tripled from USD 7.4 baillion in 2005 to USD 20.2 billion in 20The findings were reported in the second edition of the periodic Creative Economy Outlook: Trends in International Trade in Creative Industries which examines the global picture. The report also features 130 country profiles with reported creative goods and services trade data. The data covers the period 2002 to 2015 and shows the creative economy's contribution to world trade.
According to the report, China is the biggest single exporter and importer of creative goods and services. China's trade in creative goods between 2002 and 2015 has been exponential, with average annual growth rates of 14 per cent, the the United Nations Conference on Trade and Development (UNCTAD) report said.
The value of the global market for creative goods doubled from USD 208 billion in 2002 to USD 509 billion in 2015.
As per the report, China, Hong Kong (China), India, Singapore, Taiwan Province of China, Turkey, Thailand, Malaysia, Mexico and the Philippines were the top 10 performing developing economies that stimulated global trade in creative goods.
The top 10 performing exporters among developed economies, were the US, France, Italy, the UK, Germany, Switzerland, the Netherlands, Poland, Belgium and Japan, the report says.
As regards India, its creative goods exports nearly tripled from USD 7.4 billion in 2005 to USD 20.2 billion in 2014.
The share of design goods was the largest share in creative goods exports with a value of USD 17.9 billion in 2014. Jewellery was a key export at USD 13.2 billion followed by fashion accessories at USD 3.2 billion, according to the report.
Though in 2005, the US was India's top export partner for creative goods, in 2014, the country had slipped to second place, with the UAE emerging as India's top trading partner, it said.
Further, the report notes, India's fashion industry is likely to continue its growth due to its large young population.
Art crafts (carpet and yarn products) was another dynamic sector with exports at USD 1.5 billion in 2014. The report says that India had a positive trade balance in creative goods trade, which stood at USD 15.4 billion in 2014.
The main destination markets for India's creative goods exports in 2014 were Asia (58 per cent), the Americas (20 per cent) and Europe (19 per cent).
Additionally, India had become the centre for outsourcing work such as game development, game support services.
The report notes that In the coming years, India is likely to become the hub for development, porting and dubbing of various games across the globe. This is largely due to low costs and the easy availability of game developers with world-class experience, the report said.
India’s youth population at over 350 million makes it one of the largest markets for companies operating in the global gaming industry, the report said.
The report also noted that India makes more movies than any other country in the world.
"Fourteen million Indians go to the movies on a daily basis (about 1.4 per cent of the population of 1 billion) and pay the equivalent to the average day's wages (US USD 1-3) to see a film, of which Bollywood produces over 800 films each year. That is more than double the number of feature films produced in the US," ET quoted the report.
Indian gastronomy is also growing rapidly. Food service sales in the country are growing at about 10 per cent annually, making it one of the fastest growing sellers in the world, says the report.
Interestingly, this growth is double the rate expected for the much more mature US restaurant industry, and with a population quadruple the size, notes the report.
"These figures are significant on two fronts. The creative economy has both commercial and cultural worth. This dual value has led governments worldwide to focus on expanding and developing their creative economies as part of economic diversification strategies and efforts to stimulate prosperity and well-being," ET quoted Pamela Coke-Hamilton, who directs UNCTAD's trade division.
According to the report, globally design and visual arts are among the highest performing sectors with fashion, interior design and jewellery accounting for 54 per cent of creative goods exports in developed economies and 70 per cent (including toys) in developing economies.
Marisa Henderson, chief of UNCTAD's creative economy programme said, “Although the downturn in global trade has impacted all industries, the report shows the creative economy is more resilient than most.”
The Indian animation and visual effects industry (VFX) grew at 16.4 per cent in 2016 to reach a size of USD 8.2 billion, the report adds.
It notes the efforts by state governments in implementing favourable policies. Maharashtra, Karnataka, Telangana have announced, or are coming up with, policies in support of the animation and VFX industry, the report highlights.
"These would enable the Indian animation and VFX industry to effectively compete with established markets such as the US, Canada and emerging centres in Republic of Korea, France, China and Malaysia," the report said, citing a KPMG India-FICCI Indian Media and Entertainment Industry Report 2017.
The report added that visual effects are indispensable part of filmmaking and the Indian film industry is the largest in the world in terms of number of films produced.