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In terms of revenue, HSBC is the largest trade and receivables finance provider globally. James Emmett, global head of trade and receivables finance at HSBC, tells Neelasri Barman when it comes to global trade, India is no match with some of the other faster-growing economies due to its differentiating domestic scale and industry type. Edited excerpts:
What are the key trends that you see in international trade?
We are seeing three broad trends. The first being developments in emerging market corridors and the fact that a number of countries, particularly faster-growing economies, are moving into the production of higher-value goods. The second thing is developed markets are also part of this trend towards higher-value goods, as there remains a significant opportunity to specialise and further innovate. The third is key trade hubs - cities/regions, having ability to expand their trading relationships and markets such as Mumbai have the potential to be one.
In which areas can India grow in terms of international trade?
We see very significant growth in areas such as transportation and specialised components manufacturing. The emergence of new trade corridors also play a very important role. India is one of our key markets globally. On the exports side, we are seeing a significant change in the dynamics of the Indian market. We are there to support Indian companies who are looking to export, and those who are looking for opportunities to connect and trade globally.
What are the challenges for the Indian government in terms of facilitating growth in foreign trade?
India's international trade has developed very significantly since the 1990s due to liberalisation. The challenge for the government is to look at how it can facilitate exports. By that I mean to make the exports very meaningful to trading partners.
When it comes to India, has the competition intensified in trade and receivables finance segment, as many Indian banks have similar offering for Indian companies looking at exports?
It is important that competition continues to develop, and yes, it has intensified. Indian banks are going abroad and they are looking to provide international trade finance. That is going to be very important for Indian exporters. HSBC offers a global network, which is unique in its ability to support. We help Indian companies in risk mitigation and financing their international trade requirements. India's growth story in international trade is going to be very significant. HSBC is very excited about the opportunities that are opening up for Indian exporters and we look forward to helping them make use of these opportunities.
According to you, what are the learnings for Indian companies from other emerging economies?
India cannot be matched against some of the other faster-growing economies due to its differentiating domestic scale and industry type. The importance of metals manufacturing and mineral manufacturing are key for India. This means, maximising the opportunities opening up across different parts of the world and identifying key markets, such as Asia. But India will continue to have significant opportunities in developed markets such as the US, EU (European Union) and the Middle East (West Asia). India should be looking to identify the key products, which will meet the needs of those markets.
