,~?\

POb' A H-", p~~~Frv MP>/r ~- P, p')- -P2 +-Py,.....

Export Promotion Measures DurinQPost-Reforms Period

Realization the importance of exports to the economy and its role in the economic reformsintroduced recently, various steps have been undertaken to expand and diversify country'sexports in terms of products and markets in order to achieve 1 percent India's share in theworld trade which stood at 2 percent in 1950-51, 0.4 percent in 1992-93 and 0.8 percent in2003-2004. Main elements of the export strategy include (i) product-market penetrationstrategy for existing products; (ii) market diversification strategy for existing products; (iii)product diversification for existing markets and (iv) product- market diversification for newproducts and new markets. Besides, having harnessed, to a range extent, the exportpotential of developed markets like USA,EU,Japan and Australia, the focus has now been laidon expqrlding exports to the new emerging markets of Latin America, Africa and CIS by .

designing special programmes like 'Focus Latin American countries", "FocusAfrica" and "FocusCIS", as well as comprehensive Medium-Term Export Strategy for the period 2002-2007 andFocus Products and Focus Markets programmes with export performance linked with specialincentives, announced in the Foreign Trade Policies during the last three years - 2003-2004,2004-2005 and 2005-2006.

Details of export promotion programmes launched since 1992 to promote and diversify .country's exports are given below:

(1) Extreme Focus Sector Strategy (1992)

(2) Export Strategy Based on 15x15 Country - Commodity Matrix (1995)

(3) Focus Latin American Countries (LAC) (1997)

(4) Medium-Term Export Strategies for Export Products and Markets 2002-2007

(5) Focus Africa (2002)

(6) Focus Commonwealth of Independent States (CIS) (2003)

(7) Special Focus Initiatives (2004)

(8) Special Focus Products (2005)

(9) Focus Products and Focus MarketsScheme in ForeignTrade Policy2006

(10) Bilateral and Regional EconomicCooperationand TradeAgreements.

!

-II -

.~

----

, - Extreme Focus Sectors (1992)

Based on their high export potential, capable of achieving 30 pei cent growth ::.>erannumIn volume or valuE: in the medium terms, 35 product groups including sub-groups. we,~ identifiedas "Extreme Focus Sectors" for concerted export promotion thrust Necessary prepaiatory work'.'Ias done in the Ministry of Commerce on these specific sectors in close association with theindustry and trade. Detailed reports were prepared by 26 Trade Groups which had beenconstituted to analyse the constraints in respect of the specific products assigne-j to them.These Trade Groups examined the various aspects inter alia including the releva'lt policies,procedures, infrastructural facilities, and the bottlenecks experienced in respect cf the 35product groups namely: (1) Marine Products (2) Agrochemicals (3) Auto Components (4) Bicydeand Parts (5) Cement (6) Complete Vehicles (7) Drugs, Pharmcutes & Fine Chemls (8)Dyesllntmdtes & Coal Tar Chern I (9) Elect Power Genm & Distn System (10) F00twear (11)Fresh Fruits (12) Gold Jewellery (13) Granites (14) Hand Tools (15) I.C. Engine & Parts (16)Industrial Casting & Forgings (17) Tomato Paste Products (18) Tropical Fruit Juice (19) Pulp &Concentrate (20) Preserved Mushroom (21) RMG Cotton Incl. Accessories (22) RMG Silk (23)RMG Manmade Fibres (24) RMG Wool (25) RMG of other Textile Material (26) Rice (27)Computer Software (28) Spices (29) Sugar (30) Molasses (:51)Alcohol (incl. Ethyt AJcohol) (32)Sugar Machinery (33) Manmade Yam, Fabrics, Madeups (34) Tyres (35) HorticufturaVRoricltrProducts.

The reports submitted by the 26 Trade Groups were examined by a small seven-memberGroup which came out with a consolidated report to form the basis for implemental action. Theconsolidated report of this small group entitled "Strategy for Export Growth in Extreme FocusProduct Groups - AIl Agenda for Action' was submitted to the Ministry of Commerce in July1992.

The recommendations emanating from this exercise covered a variety of issues induding,among others, full convertibifrty of rupee on trade account, reduction in interest rate on exportcredit, directive to commercial banks to increase supply of credit to the export sector, opening upof Inland Container Depots (ICDs) and Container Freight Stations (CFSs) by private sector,extension of testing facilities for packaging material, simplification of procedures relating to bankguarantees for fulfillment of export obligation.

The report on Strategy for Export Growth'.embodied, besides specific recommendationsrelating to different product groups fallingwithin the purview of the 35 extreme focus sectors,suggestions on improvements in institutional framework and infrastructure such as provision ofuninterrupted power supply, adequate transport and communication facili6=---sto exportenterprises. Many of these recommendations were accepted and formed part of the unionBudget for 1993-94.

Action Plan to Boost Exports

The Government also came out witha five-pointAction Plan to boost exports in 1992-93.This included formation of a national plan for export promotion of 35 identified extreme focussectors, launching of a National Awareness Programme, one to one meeting with export houses,trading houses and star trading houses including leading industrial houses, initiatfnga wortd-wideeffort to energise India's commercial representation abroad, mounting pubrteity in overseasmarkets, stepping up of export promotion efforts in selected 40-50 foreign countries, andreorienting the role of the Directorate General of Foreign Trade (earlier known as office of theChief Controller of Imports and Exports) from a regutatory authority to that of a prornotionalagency. Steps were also taken for increased interaction with industIy and trdde andnational level organizations with a view to reducing controls and licensing as also for simplifyingprocedural formalities incidental to exports. Simultaneously, emphasis was laid on improvingbilateral trade relations with selected countries of the wOOd.

The extreme focus strategy had achieved mixedsuccess. While the growth of these 35items had been higher than the complete basket of exports, the vol3tilityof growth -had similartybeen high.

I?"

'-. 15x15 Matrix Strategy (Fifteen Thrust Product and 15 thrust Markcts (1995)

The objective of the 15x15 Strategy was to examine market diversificationanc commoditydiversification The 15 Commoditiesf15 Countries Matrixexercise was undertaken in 1995 usingthe data of mid-nineties that indicated the restricted commodity/country basket for India'sexports. It was observed that 15 countries and 15 commodities accounted for around 75% - 80%of India's exports and a presentation was made to trade and industry to set up trade facilitors forachieving increased exports in the 15 products and 15 markets. However, the exercise of the

trade facilitation did not get enough support and.response. The focus on 15/15matrix based onpast performance data was an useful exercise as it helped to focus on the importance of a fewcommodities and a few destinations in country's export performance. Two ne<H productsappeared for the first time in 1995-96 in the list of India's top 15 export products. However, theimportance products and countries continuously changed and it is interesting to see thedynamics of markets and products in country'sexports when the 15/15 matrixwas updated. The15x15 Matrix for the year 2(}(}()"{)1had been compared withthat of 1996-97 as shown in Tables 1& 2. India's First 15 Products Groups and First 15 Countries Matrixof Exportsfor the year 2000-2001 were: (1) Gems & Jewellery, (2) RMGCotton Incl. Accessories, (3) Cotton Yam, Fabrics,Madeups etc. (4) Drugs, Pharmaceutical and Rne Chemicals (5) Prtroelum Products (6)Manufactures of Meials (7) Machinery and Instruments (8) Marine Products (9) Manmade Yam,Fabrics, Made-up (10) Electronic Goods (11)Transprot Equipments (12) RMGManmade Rbres(13) Plastic and Unoleum Products (14) Inorganic/Organic/Agro Chemicals (15) Primary andsemi finished iron and steel. The fifteen countries were: (1) USA, (2) U.K, (3) Japan,(4)Gennany, (5) Hong Kong, (6) UAE, (7) Belgium, (8) Singapore, (9) Italy,(10) Nethertands,(11) Bangladesh, (12) Russia, (13) France, (14)China, and (15) Indonesia.

Effectiveness of the strateqy

. The 15x15 Matrix taken up for analysis covers about 70% of all products exported byIndia and 0Ye{"67% of India's export mar1<etsin value terms in 2000-01.

. Overall, the analysis of commoditiesshows a trend towards diversification acrossadditional mar1<ets. The share of the total top 15 product groups exported to top 15mart<etdestiRationsin the total exportof top 15 product groups decreased from 71% in1996-97 to 66% in 2()()()"{)1,indicating mar1<etdiversification of these product groups.

. However some items within the top 15 commodities have changed thus altering thecomposition of the top 15 commoditiesbasket significantly.

. Items likeoil meals, dyes and intermediates,and rice (excf. basmati)which.were in thetop 15 product groups in 1996-97were replaced by plastic and linoleum products,petroleumand otherrlQuefiedfuelproducts,and RMGmanmade fibresin2000-01.

. The top three items of India's exports contained in the Matrixof 1996-1997 continue toremain the same during 2000-2001 namely; gems jewellery, RMG,cotton and cotton yamand fabric arod made-ups.

3 Focus LAC (Latin American Countries) Strateqy

Considering the potentialof the LatinAmericanregion,an integratedprogramme -Focus:LAC"was launched in November 1997 bythe CommerceMinistry.Thisprogramme aimed atsensitizing the ocganizafions viz. ExportPromotionCouncils, Chambers of Commerce andIndustry, (CII).Exirn Bamcand ECGC was also involvedin trade promotionefforts. Variousincentives and export promotionmeasures were designed and incorporatedin this programmeincluding double weightage under textilesquota policy,enhanced supportfromMeA for salestours, participationin fairs/exhibitionsandmar1<etsurveys.A scheme forgivingawards to bestperformers in exports to f\e LACregion wasalso drawnup.- The programme extended uptoMarch, 2005 in order to consolidate the gains of previous yea~ and significantlyenhance India'strade with the Latiro American region. The main objective has been to increase interactionbetween the two regflOnsby identifying areas of bilateral trade and investments.

I~

Major Tradinq Partners

MexiC0, Brazil, Argentina, Chile, Peru, Venezuela and Colombia, Trinidad & Tobago andPanama are India's major trading partners C0nstituting 88% of the total trade "Nrththe LACregion. The FOCUS LAC programme aimed to focus at Latin American region, with addedemphasis on the 9 major trading partners of the region.

Maior items of EXpOrts& Imports

The important items of export to this region have been: textiles and ready madegarments, engineering goods such bicycles and components thereof, mopeds, diesel engines,automotive C0mponents, hand tools etc. chemical and allied items like fine chemicals, dyes anddye intermediates, tyres and tubes, rubber gloves. Besides, India also exports handicrafts items,sports goods, electronic items, jute, shellac, tea and spices to Latin American countries.

India's major imports from the region have been iron and steel and their products, non-ferrous metals, crude minerals, chemicals, PVC pulp and paper waste and raw wool.

Extreme Focus product Qroups

Three products groups Le. textiles, engineering products and chemical productsconstitute nearly 80% of India's exports to the region. In the textiles sector, readymadegarments, made ups, fabrics, yam, carpets, handicrafts, etc are fast moving export items. In theengineering sector, automobiles, auto components, electrical appliances, machinery, computersoftware, etc. have good scope for exports, bulk drugs, pharmaceuticals, dyes andintermediates, agrochemical, plastic products, naphtha, resins, essentials oils, molasses, tyresfor busses, trucks and cycles are important items of exports.

The FOCUS: LAC programme therefore aims to focus on the following major products groupsfor enhancing India's exports to the Latin American region:

(i)

(ii)

Textiles including readymade garments, carpets and handicrafts;

Engineering products incfuding computer software;

(iii) Chemical products including drugs/pharmaceuticals.

Study of trade analysis

The National Centre for Trade Information (NCTI) has updated the study on 11 LatinAmerican Countries (Argentina, Brazil, Chile, BolMa, Colombia, Mexico, Peru. Uruguay,Paraguay. Venezuela, Trinidad and Tobago) and analyzed comprehensively trade data of 17more Latin American Countries. The NCTI has added this information on their website forinformation of exporters, Councils and trade bodies for planning export strategies for LatinAmerican countries. NCTI has now proposed to upgrade the eartier trade data of 28 countries.NCTT has also canied out trade study on PTA lines of Venezuefa, Uruguay, Brazil and Mercosurcountries.

InstitutionalMechanism

Following bilateral institutional arrangements already exists with the countries of the .LatinAmerican region:

(i)

(ii)

(iii)

Indo-Argentine Joint Commission

Indo-Argentine Joint Trade Committee

Indo-Mexican Joint Commission

14-

(N)

(v)

(vi)

(vii)

(viii)

Indo-BrazilianCommercialCouncil

Indo-Cuban Joint Commission

Indo-Cuban Trade revival Committee

Indo-Suriname Joint Commission

Indo-Guyana Joint Commission

Commercial Staff in the Indian Missions

To give impetus to the country's exports to LAC region, Department of Commerce hascreated posts of Marketing Assistants in 9 Latin American countries viz.Brazil,Argentina, Chile,Colombia, Venezuela, Peru, Panama, Trinidad&Tobago and Uruguay.

(i)

Proqress durinq 2003-04

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

(viii)

(ix)(x)

it

The Text of the Preferential Trade Agreement (PTA) between India and Mercosur hasbeen signed on 25'" January 2004.

CIIorganized Indo-LAC Pharma Meet in Mumbai &Hyderabad inMay2003.

Chemexcil participated in FCE Pharma, Brazil,2003.

Plexconcil participated in Fair Escolor and Fair Hospitalar in July 2003.

EPC for Handicrafts organized Indianhandicrafts and Gifts Fair in NewDelhi in Oct. 2003and February 2004.

A Uruguayan Health Delegation visited India in May2003.

Engineering Export Promotion Councilorganized IndiaTech 2003 inBrazil.

Meetingof Indo-BrazilJoint Commissionwas heldon 21st October,:003

Meeting of Indo-Cuban Joint Commission was held in New Delhion 25thNovember, 2003.The Electronic and Computer Software EPC organized India Soft2004 in February 2004by invitingbuyers form Latin American and other regions.

Medium-Tenn of Export Strate~v for Export Products and man::ets (2002-2007)

A comprehensive Medium-Tenn Export Strategy was launched in 2002 for the period2002-2007 taking into account the experiences of past strategies and the current trade trendsobtaining in India and abroad.

In the past. the export strategies had basical!y concentrated on existing productsand existing markets of India's export sector. What is additionallynecessary, and whathas been addressed in the present strategy document. is ide!ttifi.;ation of exportopportunities after examining the import basket of major importingeconomies of theworld and identifying potential items of exports in which India is competitive vis-a-vissomeof the major exporting countries of these productsat present. Theexisting products .and .

markets have also been analysed. Focus man::ets have further been identified based

15

on different criteria. Another additionality in the current documentis that someof the key strategicpolicyissues tha: havea bearing on India's competitive advantage in opportunityareashavebeen broug!1tIn one place so thai ~v..::y me2suresthat are necessary to enhance the competitive edge ot our exporting community gets appropriatefocus Secto~-'.'.':scstratcgieshavealsobeenexamined.Thestrategydocumentfurtherfullylakesintoaccounttheinternation2':::,:elo;:~ ':<1\Sand the complexl:ies arising in tile New World TradeOrderunder the VITO.

II. PRODUCT-MARKET OPPORTUNITY IDENTIFICATION

PRODUCTIDENTIFICATIONToidentitypotentialproductsfor exportfocus.ItemsvllthhighpotentialInworlddemandwereanalyzedbylooking2: theimportbasketof threemajormarkets:EU.Japan.andUSAandalsoIndia'sexportLJasketto thesethreecountries.Tl1esecountriesconstituteagoodrepresentativesample01worldtradeastheyaccountfor53%of theworld'strade.Ato:21ofaround220 itemsatthe4-digitlevelwereidentifiedforspecialfocus.Ofthis,47Itemswereexclusivelyfrom thetop 100importsof thesemajormarkets.114itemswereexclusivelyfrom thetop 100exportsof Indiato thesemarketsand 59werein both theTop100Importsof themajormarl<etsandTop100Exportsof Indiato themajormarl<ets.Ina sense.thefirst group reflectstheitemsin whichwe canhavea realcomparativeadvantageif ourfull potentialitiesaretappedandmajormacroandsectoralpolicyinitiativesaretaken.Thesecondlist representsitemswhereourpresentexportvolumesarealreadyhighandwherethe presentrevealedcomparativeadvantagesneedto bepursuedeventhoughthe items donot figure in th.emainimportbasketof the majortradingpartners.Tt'Jethird list IncludesItemswhereourexportbasketandtheimport basketofourmajortradingpartnersconvergebutmuchscopeexiststofurtherourcomparativeadvantages.

Thepotentialitemsidentified.usingtheabovegivenmethodology,canbegroupedintosevenmainsectors:Engineering(includinginstrumentsandItemsof repairs).Textiles.Gems&Jewellery,Chemicals&allied.Agricultureandallied(includingMarineand Plantations),leather & Footwearitemsandotheritems.However,thethreeE's-Electronics,ElectricalandEngineeringgoodsfigureprominentlyin thelist of theidentifieditemswherethereis agreatpotentialforIndia,thoughatpresentin manyof theseitemsIndiahasonlya smallmarl<etpresence.

Theproductsidentifiedalsoaccountfor a largevalueofourcurrentexportsandthepotentialfor growthin theseitems isalsoenormous.Therearemanypotentialitemsin whichwehaveapresence.butpotentialforgrowthisveryhigh. Thereis alsopotentialfor exportsof the identifieditemsto identifiedmarl<etsotherthanUSA,EUandJapan.Suchdetailedidentificationof productsat the4-digit levelwouldhetpexportersto concentrateonexportsof particularitemswithin anoverallsectoror sub-sector.

MARKETIDENTIFICATIONTwentyfive marketshavebeenidentifiedbasedondifferentcriteria.However,USA.EUandJapanasexpected.are themainmarketsbasedon mostof thecriteria.

Thefocus 25 marketswhichwereidentifiedbasedon fivemajorcriteriainclude:USA.EU.Japan,HongKong.China.KoreaRep..Australia.Canada.Mexico.Switzerland.Brazil.Turkey.Poland.TaipeiChinese.Singapore,Thailand.Russl2.Israel,Norway.Argentina.Indonesia.SaudiArabia.UAE.S.AfricaandGreece.Formanyof the marketsof developingcountries,region-specificpolicieson the linesof FocusLACcanbe followedwhilefor developedcountries.FOI linkedexportsand specialpreferentialtradingarrangementscanbeexamined.

Thus,basicallyfour strategiesrelatedto productsandmarl<etscanbefollowed(i) Product-MarketPenetrationstrateqyfor existingproducts.(ii) Market Diversificationstrategyforexistingproducts.(Hi)ProductDiversificationstrategy forexistingmarketsand(iv) Productmarket diversificationin thecaseof newproductsandnewmarl<ets.

III. SECTOR-WISESTRATEGIES

Fortheidentifiedpol-'f1tial sectors.indicativesector-wisestrategieshavebeengivenbasedonthedetailedstrat€iJYpaperprepared by the Export PromotionCouncils/CommodityBoardsanddetaileddiscussionsheldwith exporters.The mainsectors covered are liie following: Engineering (incfudinginstrumentsand items of repairsh--Textiles,Gems& Jewellesy.ChemIcals& Allied. Agriculture. and Allied (including MarineandPlantations).Leather& FootwearitemsandOther items

ThesestrategiesneedtobeoperationalisedbyGovemmefltforachievingthemaximumresults.Someofthemajorstrategiessuggestedfor the differentsectorsare as follows:

16

IV. KEYSTRATECICPOLICIES& ISSUESANDSECTOR-WISESTRATEGIESTherearesomekeyst~atf(Jicpoliciesand issueswhiChWIIrmcactlndia's abilityto effectivelyadoptthe product marketstiateoiesin the newwock!tradeorder.Fifteensuchmampot1cieshavebeenexaminedlor themerchand,s:;sector. Inaddition.a sectionhasbeena:'.:fedaboutour DOSslbl'.aDDroac.hesandstrateoieslor servicesexports.

Toachieveove!all exportcompetitiveness.the broadecQOOmacandtraderelatedissuesincludetariff issues aHeclinQIndianexportspricecompetitiveness.macroec.onomlCISsuessuchasFOIandexchdr\Qeratemechanism.proceduralissuessuchas exportrelatedtaxrebates.transac.lIoncostsand,alsoinlrastructureissuessuchasexportinfrastructure.marketinosupportetc.AlltheseptaytheirpartInaNectlOOt~ ovefallcompetitiveness01India'sexportsinthe internationalarena.Thekey issuesarcdiscussedbelow:

Policyfor price competitiveness:A strateOlctanffpoltC;for eachindustr{is rCQuircd.whichlocuseson ' Maintainino the Real Effective EJchanQ~ ~al~ ()f the Rupr.e at a level appropriatefor ensuring pricecompehtivenessof exports.. Tariffpolicywhich achieves lower averageImport tanUs~nefittinQ exportsthrough cheaper cost 01inputs by shiftingto a 8.di<Jitnomenctature for tariffs.: Balancino 01overall lower tariffs by protecting sensitr/e "~ms which arelikelyto be affected due to removal of QRs.

Trade- DefenceMechanism:Whileanacross-the-boardlowertariff regimeis beneHciaIto country'scompetitiveness.theremustbe in placean effectiveand fast-responsivetrade defence mechanismto provideprotectionto domesticindustry,as and whenit facesunfairtrade practices.Besldesshiftingtoa-digitnomenclature,theanti-dumping andsafeguardduty mechanism wouldhaveto continuetobeeffectiveandfurtherstrengtheningof thesemechanismsshouldbedonewhennecessary.It hasbeenfoundthattodefendacaseabroad, theconcernedIndianfirmsdonotalwayshavethe abilityandresourcesto marshata largevolumeofdataforpresentationbeforetheconcernedGovernmentauthorities.Whilethe sensitivesectorsareprotectedby manycountries bYnon-tariffmeasures,there Is theneed to examine theimpositionofgenuinenon-tariffmeasureslikeQualitycertification,labelingforgeneticallymodifiedfoodincfudinganimalgenesinfood in aWTOcompatibleway.Thisstrategyif usedwithcare,willnotonlysafeguardIndia'ssensitivesectorsbutatsopromoteexports.

WTOcompatible policies: In aligningwith WTO a9reei:\ents. Indianeedsto constantly examineas to whether thesubsidies are actionable-or not. The ASCM does provideforNon-ActionableSubsidies to be providedfor e~rts. Mostof the developed countries are giving these subsidies.The main subsidies under this category are the non-specificsubsidiesbased on objective criteria. There is alsoscopefor supporting theagricultural sector in manyways.

Foreign Direct Investment: FOIpolicy frameandproceduralpackageswillhaveto be. as it is donenow. continuallyevaluatedin the contextot theimpactof FOIonpromotionof exports.Thisiscriticalespeciallyfor manufactured hi-techproductsfrom India.India'sFOIpolicyneeds to balanceexport-orientedindustriesandthoseseekingto o~idte in thedomesticmarket.

Tax Rebate: Exportschemes need to be devised in sucha maooerthat helptheexporters to get backthe taxes borne bythem efficiently and Quicldy.Schemes of reimbursementneedto be transparentand comprehensiveto woO<effectively.Such a system is possible if a comprehensiveVATsystemis introducedateverylevel.Lower customsand excise dutiesfor majorinputs needed for exports can minimisethe needfor duty drawback.

Transaction Costs: Source andQuantumof transactioncosts by headneedsto be classified.Whileautomation andsystemicsimplificationcanhelpreducetransactioncostsin theshort term,the long-term solutionliesin modifyingtheindirecttax structure, whichIs the biggest contributoroftransactionscosts.Thereis needfor proceduralsimplifICationslikeenforcingLUTfacilitiesInsteadof bank guarantees.etc.In addition,EOIenablesenhanced conoectMtyfor ~xportersbyprocessingdocumentselectronicallyand throuondigitalsignatures thatreduceprocessIngUmeandthus trcmsactioncosts.Finally, incrf;'asing accountabilityof exportprocessingpersonnelwillenhancereductionof transactioncosts.

Export Infrastructure: Up-gradation of overall tlomestic infrastructure Is a gradual process on account of resourcescarcity .ASwell as the minimum project implementationtime requirements.A pragmatic solution rteSin identifying andpr1oritizinospecific Infrastructure projects within SEls crucial for export enhancement.Also, exportInfrastructure shouldbe Includedas part of the EXIM policyas it leads to enhancementof ~xports.

1'6 ,~

TradeAgreements:Based011differentcriteria.thereisscopefor AgreementswithGCCcountries.ASEAIJanoE;I~!Europeancountriestor Agriculturalexports.withUSAandCanadafor Marineprooucts,with CIScountries.Russiaant;LatinAmerICancountriesfor Wool 8.WoolenproductsandFTA'swith LAC.Africa,CISlIndSEAsiabllseccn rcqiona~Importanceandcomplement3rilieswith India.GiventheImportanceof FreeTradeAreaof America's(FTAA's),andotherRTAs,thereis also theneedfor a closeunderstandingwithUS.EUandothermajorplayersin the RTAsto safeguarQagainstanyadverseeffectdue to ourcompetitorswhoaremembersof theseFTAs.It is alsoimportantfor future growth.TradeAgreementswithJapanmaybeessentialtocounterbalancetheChineseeffectandtradeagreementwith Chinamaybeneededto tapthe highpotentialfor exportstoChina.Carefulwell-thoughtoutFTAsandPTAsareneeded

".

StateexportparticIpation:InvolvementofStatestoalilradenegotiationsalongwiththeCentreisofparamountimportancc.StatesthathousefocusexpOltIndustriesshouldbeInvolvedactivelyinalldiscussions!negotiationsandtradeagreementlormulationsregardingtheseproducts.Exportperformanceshouldalsobeincludedasoneof thecriteriafor devolutionot fundsto Statcs.A newschemehasbeenputinplacebyDepartmentofCommerceforgreaterassistanceto States 1hisschemecanbewidenedanddeepened.

Developing5S1 export Industry: A well.formulatedpackageofferingsupportto 551sis essentialto build on theirIntrinsicstrengthsin thedereservedfuture andhelptheinternationalizationprocessof theSSIsector.Thereis a necdtoidentifythoseproductcategoriescurrentlyhavingstrongSSIpresenceandperceivedto recordhighdemandgrowth ingtobalmarkets.Thesecondstage willbe to implementthespecificcomponentsof theporlCypackagefor strengtheningandupgradinlJthe productionpotentialandexport-orientationof theseSSIsectors.Thepolicypackagethat has beenpreparedfor strengthening'the SSIsectorneedto bepursuedfor consolidatingtheroleof 5S1sectorin exports.

SpecialEconomicZones:Manycountries,whichinlJeneralfollowa restriclivetradepolicy,havefelttheneedfor settingupexportprocessinglonesfexport-orientedunits/specialeconomiczonesandsimilarvariants.Therecentpolicyby India .

in thisregardis theintroductionof SEZsbyconvertingexistingEPZsto SEZsandalsoallowingSEZsintheprivate sectoeThereis a needfor continuationof this policyandaddingneVifeaturesin orderto makethe packageas attractiveaspossible.

\

MarketDevelopmentProgramsandDisseminationof InformaUon:AllMarketAssistanceprogramsneedto b~combinedundera singteMarketDevelopmentProoram.TheprOlJramshoufdfocuson:. Loanguaranteesandexportaedit insuranceindifficultmarketsandmediuml\ongtermprojects. Enhancedfunding for existing export promotion activitiesliketrade fairs, trademissions,reversetrademissions, buyer-

sellermeets.catalogueshows etc.. Technicatassistancefor bids and attaininginternationalqualitlstandardsandcertification.etc..Concessional funding for technology absorption and marketdevelopment

Abeginnin<jhas alreadybeenmadein this regard.

Disseminationof informationis anintegratpartofstrategicplanningforexports.ThiswouldincludedetailedcommunicationregardingspecificinitiativesundervariousPreferentialTradingAgreementssignedwith strategicmarketsor productspecificarrangements.Communication mechanismssuchas IndustryNeVislettersand Internetbasedinformation~isseminationwouldhelpimproveactiveparticipationbytheexportingcommunityinachievingIndia'sexportgoats. TheIndianMissions abroad and EPCslCBsneed to befurtheractivated.

Theadoptionof thedifferentmacrostrategiesalongwithsector-wisestrategiesoutlinedin theeartier ChapterC2n help inconcretising the product-market strategies outlinedeartierand help in doublingIndia'sexports in the medium term.

RegionalFocus RegionalfocuswasfirstInitiatedbyDepartmentofCommercein1997for theLatinAmericareoion. ThisreQionalfocus has alreadypaid dividends as an evaluationof the programmerevealsthatshareof Indianexport to LAChavegoneup from1.43percent in 1996-97to2.21per('-cntin2000-01. Thedecade'sgrowthrateofourexpocts during1990-2000showsthatthegrowthrateofAfricahasbeenoneofthehighest.Astheregion-specificfocushas already paiddividends. we shouldactivelyconsider such focussedprogrammesfor regionslikeAfrica andfor any other regiondependingupon thedevelopments.

S~rviceexports: Thereis a need for a radicalstrategyto I'romoteservic-csexportsin which Indiahasa rompetitiveadvantage.tndianeeds topromoteexportsofnotonlyservicesbutalsoexportsofgoodsneedingtheseservices-Promotion

lC)

of both softwareandhardwarehas to be donesimultaneously.A mediumterm strategyb~ servicessector will bepreparedby theDepartmentof CommerceandtheworKhasalreadybeenil1rtiated.

V. MEDIUMTERMEXPORTTHRUSTExportprojectionshavebeenmadewhichshowthatIndianeedsa 1j .9%CompoundAnnu2:GrOYl1hRate(CAGR)forexportsfor thenextfiveyearsI.e,2002.2007to reach1%of world exportsof 80..18bill!onUSdollars.This is a neardoublingof exportsin themediumterm.Sector-wiseandregion-wiseprojectionshavealsoDeen!!\ade.

VI. INSTITUTIONALMECHANISMFORFOLLOW-UP .

Takingstockof thedevelopmentsin the recentpastand'tonsideringthecurrentglobaleconomicenvironment.a stablepolicyenvironmentlacedwith innovativemeasureshasbeensuggestedin theMediumTermExportStrategyfor 2002-2007.Thiswouldfacilitatea morefavourabletradingenvironmentto enableourexportingcommunityto achievehighergrowthratesIn theglobaltradewhich is becomingincreasinglycompetitive.Thestrategiesthat havebeenadvocatedforthenext5yearsareInasenseaparadigmshift fromtheearlierapproaches.Incontrasttotheeartierapproachof focussingonexistingproductsandexistingmarketsof India'sexportsector,thenewapproachoutlinesanopportunity2ssessmentafterexaminingtheimportbasket01majorimportingeconomiesof thewondandidentifyingpotentialitemsof exportsinwhichIndiais competitivealongwith furtheropportunitiesin theitemscurrentlyexportedby lnc:fqAdditionally,someofthe key strategicpOlicyissuesthat havea bearingon India'scompetitiveadvantagein opportunityareashave beenbroughtIn one placein a focussedmannerso thatpolicymeasuresare takento enhancethe competitiveedge of ourexportingcommunity.Sector-wisestrategieshavealsobeenexaminedfor consideration.Thisstrateoyfully takes intoaccountthe internationaldevelopmentsandthecomplexitiesarisingin thenewworldtradeorder underthe WTO.

It is necessaryto setupan institutionalmechanismto constantlymonitortheprogressof the achievementof variousobjectivesbroadlyindicatedin theMediumTermExportStrategy.Asthe strategydocumenthasto beadoptedas a roadmapfor the mediumtermby thoseconcernedin t~ Government.it is essentialfor themtoget the actionplan preparedin a time boundmannerto achievethe goalssetoutfor themediumtermin consultationwith theconcernedExportPromotionCouncils,CommodityBoards,CommercialAttachesin IndianEmbassiesandotherexportpromotionbodies.In this process,aneffectiveimplementationmodelhastobeevolvedwith in-builtcomponents10providefor a constant.reviewdictatedby thestrategicopportunitiesandchallengesof the dynamicglobaltradingenvironmentof particularimportancewouldbeafocusontheoniloing WID neQotiationsandhowbestthestrategiesof~rt sectorcould riseupto thechallengesof theNewWor1dTradeOrder.Wherenecessary,strategiesoutlinedin thisdocumentmayhaveto bereformulatedevenduringmid-courseif suchchangeswouldensurebetterresuttsfortheIndianeconomyin generalandfor theexportsectorInparticular.

To ensurethat an institutionalmechanismis in place.theEconomicDivisionin theDepartmentof Commercewill bedesignatedasthenodalolVisionandtheEconomicAdviseralongwithacoregroupofseniorofficerswithintheDepartmentandrepresentativesof majorexportpromotionbodiesasalsosomeexperts in theacademiash2I ensurethat resourcesarecommittedtoachievegoals.andprovidethedynalTlictrackagainstwhich progresscanbemeasured.Thiscore groupwill beheadedbytheCommerceSecretaryand shallmeetatieastonceinsixmonthormorefrequentlyv~rever oecessary.

2..0 ~~I

Analysis of Potential Markets

Among the 25 markets identifi€d as the potential markets, the USA, EU and Japan are the main marketsbased on the most of the criteria. First, the US market is analyzed. Then based on the examination .of tt".eimport basket of USA, the top 100 commodities of USA's imports are identifiedand analyzed for India'scompetitiveness and then the potential commodities are short-tisted. Next, based on examination ofIndia's export basket to USA, the top 100 import commodities of USA from India are analyzed for India'sprice competitiveness and then the potential commodities are short-listed.. Next, the other markets, EUand Japan are analyzed in a similar manner. Finally; for all the three mat1<ets,the identified potential itemsare collated together and are grouped into product sectors. The items not in top 100 imports but fallingunder top 900,<,of imports of US, EU and Japan have also been analysed. The tariffsfor the top 100imports from world and top 100 imports from loosa, by these markets have also been arsalysed. TI-.erelevance to some other major identified mar1<etsof the identifiedlistof items is also attempted.

Items in which India can perfonn better In top 100 Imports of US from India:

(1) Frozen fish, not fillets (2) Crustaceans (3) Othet"seafood (4) Coffee (5) Other fruit,nut (6) Antibiotics (7)Polye~, expoxide, etc. (8) Plate, sheet. etc. and cell (9) New Pneumatic tyres (10) Suitcase, bag, walletete. (11) Apparel plus accessories of leather or composition of leather (12) Womenfgirl suit, ensembles(13) Men'sIboy's shirts (14) Women/girts, shirt. blouse (15) Men'sIboy's underpants, pyjamas etc. (16) T-shirt, singlet. etc. (17) Sweater, pullover, vest (18) Overcoat, etc. menlboys (19) Overcoat. etc. womenIgirl(20) Suits, ensembles, etc (21) Women/gir1suits etc (22) Men's'lboy's shirts (23) MenJboy undershirt. etc(24) Women/girl slips, etc (25) Baby garment and accessories (26) Other made-up articles, dress pattern(27) Footwear of rubber/plasticlleather (28) ImitationJewellery (29) Aat rolled products of iron or non-altoy-steel exceeding 600 mm (30) Tube/pipe fitting, iron and steel (31) Screw, bolt. but, washer, etc (32)Household articles and parts (33) Other articles of ironIsteel (34) Unwrought Aluminium(35) HO$uehoIdarticles, etc (36) Hardware. fixtures, caster, etc (38) Liquid pumps, elevators' (38) pjr relatedpumpslcompressors (39) Parts 8425 to 8430 (40) Computers and components (41) Pipe taps, cock. valve(42) BaWroIlerbearings (43) Bectric moIors, generators (44)ADP Power supp6es eft: (45) Video apparatus(46) 8ectrical Appliances for switch not exceeding 1000v (47) Semiconductor device, Didoes, Transistors(48) Integrated circuits (49) Tractors, not in 8709 (50) Part/accessories 8701~05 (51) X-ray etc. tube.pan. etc (52) Other furniture, not seal (53) lamps, lighting, fitting(54) Festive, camiva~ ~c .

Items in which India can perfonn better Intop 100Importsof EUfromIndia

(1) Diamonds (2) Jewellery w!th precious metals (3) WomenIGic1ssui:s, etc (4) Ii\eo (5) Men'sIboy's shirts(6) Coffee (7) Pepper (8) Screws, nuts and bolts, washers (9) Antibiotics (10) Footwear with sole ofrubber/plastic1leather (11) T-shirt. singlet. etc (12) Rat roll hot coil (13) Sweater, PuIioYer, Vest (14)WomenK3ir1sslip, Pyjamas (15) Gas turbines (16) Other bovineleather (17) Un-manufactured tobacco (18)Other seafood (19) Synthetic filament yam (20) Men's1Boysshirts (21) Men/sIBoysundefpauts (22) Suits.eosembles etc (23) Crustaceans (24) lamp, lighting fitting(25)Women/Girls suit ensembles (26) Iron ore.and coocentrates (27) Hardware fixtures (27) 0veR:0ats Men's1Boys (29) Woven fabrics of synthetic .filament yam (30) Other plate sheet (31) Track suits, ski suit, etc (32) Flat rolledproducts of iron, eteexceeding 600 mm (33) Babies garments (34) Partslaccessories (35) Liquid punps (36) Other fabrics.knitfcrocheted (37) Parts engines (38) Spor1sequipment, pools(39) Transmission shafts, gear ban or ro(l~screws etc (40) AOP Power supplies (41) Organs suffur components (42) Other medk:ameuts (43) Babygarments and accessories (44) Womenlgil1sovercoat, car coat, caps etc (45) Household articles and parts(46) Electrical appliances for switch not exceeding 1000v (47) Women1Gir1slips etc (48) lamp lightingfittinog.

Items in which India can perfonn better In top 100 imports of Japan from India:

(1) Women/girls suits etc. (2) Men'sIboy's shifts (3) Womoo'giOblouse, shirts (4) Woven fabrics (5) Unen(6) Corrbed yam (7) Shawl, scarf, muffler etc (8) Pipe, taps, valve cocks (9) Primacyeel batteries (10)Organo-sulphur compounds (11) Suitcase, bags (12) Antibiotics(13) Synthetic organic ooIouring material -(14) X-Ray(tubes)/pans (15) Fern> alloys (16)Tea (17) JewclIerywithprecious metafs(18) CUt flowers.

21

-- ~--

EXPORT OF PRINCIPAL COMMODITIES: "0. 2. .tL. '>

I. PLANTATIONS 2723.26 2792.14 1875.29 1938.42 3.37

1. Tea 1637.35 1784.18" 1243.13 1089.60 I -12.35

2. Coffee 1085.92 1007.96 632.16 848.82 I 34.27

II. AGRl&ALLIED PRDTS 24844.48 27111.41 16766.63 18282.20 I 9.04

1. Cereal 6956.68 8866.38 5153.55 5584.68 8.37

a) Rice 4167.98 6641.67 3323.84 4706.48 41.60

b) Wheat 2391.15 1448.03 1183.18 542.28 I -54.17

c) Others 397.55 776.68 646.53 335.92 I -48.04

2. Pulses 328.60 553.81 367.31 '682.72 85.87

3. Tobacco 1096.47 1246.75 773.54 791.47 2.32

a) Unmanufactured 801.41 937.71 572.44 635.85 11.08

b) Manufactured 295.06 309.04 201.10 I 155.62 I -22.62

4. Spices 11544.18 I 1794.11 I 1240.92 11200.32 I -3.27

5. Nuts & Seeds 3003.45 3573.05 2275.87 2187.08 -3.90

a) Cashew incl. CNSL 1704.84 2347.73 1529.34 1533.35 0.26

b) Sesame & Niger seed I 754.30 I 723.33 I 444.38 I 420.65 I -5.34

c) Groundnut I 544.30 501.99 302.16 233.08 -22.86

6. Oil Meals . 3348.41 3100.75 1613.92 1866.74 . '2.91

7. GuergumMeal 507.90 655.96 372.11 . 583.91 56.92

8. Castor Oil 656.06 1028.26 648.57 629.60 -2.89

9. Shellac 179.74 162.77 92.83 109.90 18.39

10. Sugar & Mollasses 1235.97 149.13 115.87 97.26 -16.06

11. Processed Foods 3485.06 3234.65 2138.17 2233.~a) Fresh Fruits & 1737.95 1625.05 1080.61 1044.50 I -3.34

Vegetable

b) FruitsNegetable seeds

c) Processed and misc.Processed items

12. Meat & Preparations

13. Poultry & Dairy Product

14. Floriculture products

15. Spirit & Beverages

53.61

1693.50

62.93

1546.67

35.57

1021.99

41.27

1148.21

16.04

12.35

1714.41

415.15

250.47

121.92

1734.37-670.54-205.25-135.62

1492.45

540.41

136.26.

145.21

25.10

49.17

1192.97

362.28

137.99

60.72

-1.25

79-.89L'

- 2.."2..-

'.' ~'.share~',-" - .,'-'0

;~;!-CI,-':~~/~£c.;'.c;, :~

0.75

0.42

0.33

7.08

2.16

1.82

0.21

0.13

0.26

0.31

0.25

0.06

0.46

0.85

0.59

0.16

0.09

0.72

0.23

0.24

0.04

0.04

0.86

0.40

0.02

0.44

0.58

021

0.05

0.06

23-

.. ..,."..."""_ . "'- .""" -. o- -- . - -

m'MARINE PRODUCTS6105.63 5695.21 3894.-73 3931.00 0.93 1.52

M'ORES & MINERALS10884.62 18841.77 10882.69 13857.87 27.34 5.36

k Iron ore5173.26 11814.84 6547.70 8670.85 32.43 3.36'

21t"M105.66 62.7 4 41.36 46.09 11.43 0.02

. . ica

, 3Processed Minerals 2879.95 3402.72 2169.66 2653.95 22.32 1.03

4. Other ores & Minerals 2433.75 3330.60 2027.84 2380.33 17.38 0.92,

5. Coal 291.99 230.86 96.12 106.66 10.97 0.04

V. LEATHER & MFRS. 9939.43 10285.86 6875.65 6811.70 -0.93 2.64

1. Footwear 3524.60 3707.02 2308.10 2561.29 10.97 0.99

2. Leather & mfrs. 6414.83 6578.84 4567.55 4250.41 -6.94 1.64

VI.GEMS & JEWELLERY 48586.07 61580.58 38327.85 44587.50 16.33 17.26

VlI.SPORTS GOODS. 455.48 440.80 289.40 325.53 12.48 0.13

VlII.CHEMICALS & 45768.06 56960.62 35174.81 37983.72 7.99 14.70RELATED PRODUCTS

1. Basic chemls.,Pharma 26861.56 30092.07 18932.03 21229.30 12.13 8.22& cosmetics

2. Plastics & Linoleum 8054.08 13243.21 8158.91 7435.99 -8.86 2.88

3. Rubber, glass &other products 9199.97 11357.54 6733.01 7553.40 12.18 2.92

4. Residual chemls. &allied products 1652.46 2267.79 1350.86 1765.03 30.66 0.68

IX.ENGINEERING GOODS 48324.44 65543.24 40229.52 47199.21 17.32 18.27

MACHINERY 22391.89 29136.76 17836.88 23672.87 32.12 9.16

Machine tools 646.32 727.95 470.53 I 550.19 16.93 0.21

Machinery & Instruments 12757.45 15694.86 9468.65 11760.12 24.20 4.55

Transport equipments 8988.12 12713.94 7897.70 11362.56 43.87 4.40

.IRON & STEEL 11385.72 16315.55 9936.82 8925.19 -1u.18 3.45

Iron & Steel bar rod etc 1487.28 1725.10 1087.83 1339.50 23.14 0.52Primary & semi- fnshdiron & steel 9898.44 14590.44 8848.98 7585.69 -14.28 '2.94

OTHER ENGINEERING 14546.83 20090.94 12455.83 14601.15 17.22 5.65ITEMS

Ferro Alloys 388.78 819.13 531.54 503.24 -5.32 0.19

Aluminium other than prods. 715.88 810.80 358.69 327.60 -8.67 0.13

Non-ferrous metals 2084.89 3414.55 2075.02 3122.89 50.50 1.21

Manufacture of metals 11150.28 14734.22 9263.38 10484.61 13.18 4.06

Residual Engineering Items 06.99 312.23 227.19 162.80 -28.34 0.06

"':.

- 2-4--

X. ELECTRONIC GOODS 8293.86 8105.93 5271.42 5445.52 3.30 I 2.11

1. Electronics 7941.86 7885.93 5132.54 5220.30 1.71.1 2.02

2. CompurSoftware in 352.01 220.01 138.88 225.22 62.17 I 0.09

physical form

XI.PROJECT GOODS 386.58 220:92 125.33 343.09 173.75 I 0.13,

XII.TEXTILES 56082.21 53996.24 35977.29 36994.86 2.83 I 14.32

1. Readymade garments 28634.40 27077.4 7 17666.90 20118.09 13.87 J 7.79

2 Cotton,yarn,fabrics. 15599.87 14389.26 9890.38 9360.15 -5.36 I 3.62made-ups, etc.

3. Manmade textiles I 8368.83 I 8738.05 I 5956.26 I 5026.18 I -15.62 I 1.95made-ups, etc.

4. Natural silk.textiles 1739.96 1823.06 1173.63 1118.70 -4.68 I 0.43

5. Wool & woollen mfrs. 267.81 298.52 203.11 220.24 8.44 0.09

6. Coir & coir mfrs. 357.37 456.35 296.52 345.37 16.4 7 0.13

7. Jute mfrs. I 1113.98 1213.53 790.49 806.13 1.98 0.31

XIII. HANDICRAFTS I 2296.13 1543.27 1171.15 1199.06 2.38 0.46

XIV.CARPETS I 2691.23 2679.43 1777.60 1988.06 11.84 0.77

1. Hand-made' excl. Silk I 2571.02 2556.87 1719.57 1933.92 12.47' 0.75

2. Mill-made excl. Silk I 0.00 0.00 0.00 0.00 0.00 0.00

3. Silk Carpets 120.22 122.56 58.03 54.14 -6,71 0.02

X!V. COTTON RAW iocl. waste 942.37 364.49 226.08 821.64 263.43 0.32

XVI. PETROLEUM PRODUCTS 16397.44 30518.10 19965.20 29267.09 46.59 11.33

XVII.UNCLASSIFIED EXPORTS 8645.46 9388.87 5843.06 7407.56 26.78 2.87

GRAND TOTALI 293366.75

356068.88 224673.72 258384.05 15.00 100.00

SOURCE :- DGCI&S

C6'ffinro

.~~~~~

"..

EXPORTS BY REGIONS AND COUNTRIESTo.€..1..c. Lf~

-

",o:,t" ~~... 7-_";'__<-=""-" ~~~;'I, E ..:;~ a-

~. ~.~ , <Sh --~, """"'--~ -'"r:.;? . -- or. ""'"

'0 OO~.~ ~Of)"~ '. :~:-;-'"-

,~- ~xf..5£ - :;rJ-Tr; ~~"'-..~.':<";"r;fI -- r - - . - re'''.-.,«i9';:'f1~h~L ;.,-=,"~#. ~ .,,;9fP31 - ." " - 3>~- >=:.'

72382.93 84736.77 53375.72 62451.29 17.00 24.17

66370.13 77488.74 48652.77 57139.96 17.44 .22.11 I8297.56 10972.69:' 6966.12 7367.21 5.76 2.85 I1111.54 1291.27 788.73 959.39 21.64 0.37 J5885.84 7229.99 4545.44 5158.45 13.49 2.m

11692.61 11880.32 7559.69 8482.77 12.21 3.28

919.20 1302.44 813.04 1343.56 65.25 0.52

693.56 853.58 568.72 552.16 -2.91 0.21

7946.88 9708.93 5833.72 5806.46 -0.47 2.25

65.21 48.58 30.78 26.17 -14.97 0.01

5923.65 6820.85 4232.19 6267.55 48.09 2.43

780.67 928.58 649.86 611.88 -5.84 02~

41107.02 5904.96 3628.09 3872.78 6.74 1.50

13892.31 15926.84 10070.13 13010.94 29.20 5.<M

488.82 502.67 340.66 341.40 0.22 0.13

1010.36 1025.43 650.66 782.01 20.19 0.3D

511321.- 611.96 394.78 528.48 33.87 0.20129.59' 122.74 77.87 83.68 7.46 0.03541.99 140.60 46.66 500.63 972.96 0.19

82.36 132.60 96.50 80.45 -16.63 0.03

27.50 42.11 26.67 30.97 16.14" 0.01

75.05 70.53 41.11 69.68 69.52 -- 0.03404.46 374.05 211.08 256.53 21.53 0.10

77.44 101.41 68.69 56.70 -17.44 0.02422.15 466.09 349.39 222.95 -36.19 0.09

616.70 750.02 47928 519.68 8.43 02D

166.31 279.49 182.91 207.44 13.41 0.06

6012.80 7248.03 4722.95 5311.33 12.46 2.06

347.79 449.13 284.86 351.86 23.52 O.g2588.63 3091.59 1989.71 2366.84 18.95 0.922067.21 2344.85 158624 1215.03 -23.40 0.47

555.13 795.06 498.41 392.66 -21.22 0.15219.61 476.33 275.34 214.48 -22.10 0.05

115.89 107.76 76.07 54.34 -28.56 0.0277.33 40.53 31.81 19.59 -38.41 0.01

4742.97 4662.55 3118.81 3126.72 0.25 1.21

3279.80 2684.33 1735.72 1841.14 6.07 0.71

1463.17 1978.22 1383.09 1285.58 -7.05 0.50

343.76 357.37 244.89 229.32 -6.36 .0.09506.69 907.67 652.86 633.82 -2.92 025

~

I. WEST EUROPE

(a) EU Countries1. Belgium2. Denmark3. France

4. Germany5. Greece

6. Ireland

7. Italy

8. Luxembourg9. Nether1ands

10. Portugal11. Spain

12. United Kingdom13. Austria14. Sweden

15. Finland

16. CyprusI 17. MaltaI

I 18. Lithuania

. 19. Estonia20. Latvia

21. Czech Republic

22. Slovak Republic

23. Hungary24. Poland

25. Slovenia

(b) Rest of West Europe1. Norway2. Turkey3. Switzer1and

II. EAST EUROPE1. Romania

2. Buigaria

3. Serbia &MontenegroIII. CJ.S.& BALTIC STATES

1)Russia)) Rest of CIS Countries

Kazakhstan

!. Ukraine

- 25-

2.

~r:.~

SOURCE :- DGCI&S

- ':b6 ~

. r-re R. ...'. ' . . .. '..", JI" .r.@ .. -- . -- .,. '

IV.ASIA AND OCEANIA136112.79 168822.80 104251.83 120663.09 15.74 46.70

(a) EscaP93899.67 115321.69 71030.41 84900.14 19.53 32.86

1. Bangladesh 7998.98 7126.94 4375.62 4048.60 -7.47 1.57

2. Nepal3075.79 3273.06 2347.34 2329.66 -0.75 0.90

3. Sri Lanka .6061.91 6082.60 4053.02 5543.16 36.77 2.15

4. Australia . 2684.91 3086.93 2023.53 2172.78 7-38 '0,84

5. China PR 13579.06 20606.84 11272.39 15229.49 35.iO 5.89

6. Hongkong 14988.52 16405.99 10215.38 12401.52 21.4'] 4.80

7. Indonesia 5179.68 5799.27 3426.98 3396.28 -0.90 1.31

8. Japan 7854.45 8885.62 5583.06 6032.70 8.05 2.33

9. Korea Republic of 3514.65 4325.84 2752.05 3896.27 41.58 1.51

10. Malaysia .- 4102.38 4476.77 3144.63 2775.63 -11.73 1.07-9763.93 17053.79 10142.24 15615.05 53.96 6.0411. Singapore

12. Thailand 3821.72 3846.44 2364.66 2751.78 16.37 1.06

13. Pakistan 1318.52 2271.03 1431.46 1505.21 5.15 0.58

(b) Others 42213.12 53501.11 33221.42 35762.96 7.65 13.84

1. Saudi Arabia 5161.77 6154.53 3987.60 4630.49 16.12 1.79

2. United Arab Emirates 23552.85 31893.01 18966.27 20562.10 8.41 7.96

3. Israel 3326.80 4447.98 2966.29 3278.38 10.52 1.27

V. AFRICA 16947.32 24093.07 14235.04 18176.25 27.69 7.03

1. Egypt 1688.65 1901.93 1163.09 1545.43 .,32.87 0.60

.2. Nigeria 2598.51 2753.39 1618.35 231129 .42.82 0.89

3. South Africa 2478.39 4307.14 2955.66 4244.11 43.59 1.64

VI. AMERICA 61705.00 72707.08 48303.85 54503M 12.83 21.09

(a) North America 56305.54 63282.74 42203.87 46819.44 10.94 18.12

1. Car.ada 3507.00 3667.13 2391.07 2476.85 3.59 0.96

2. U.SA 52798.54 59604.33 39811.40 44340.30 11.38 17.16

(b) Latin American Countries 5182.70 9357.25 6061.36 7613.92 25.61 2.95

1. Braz:jl 1266.52 2947.98 1954.88 3003.79 53.66 1.16

2. Argentina 401.29 803.17 321.36 53024 65.00 0.21

3. Mexico 1215.07 1583.04 1123.14 1038.07 -7.58 0.40

(c) Rest of America 216.75 67.09 38.62 70.09 81.48 0.03

1. Panama Canal Zone 14.71 2.09 1.89 19.87 949.35 0.01

2. Peuno Rjco 121.46 58.14 32.16 48.99 52.34 0.02

3.. Turks & Cab:>s Is. 79.38 1.42 1.36 0.31 . -;77.31 0.00.

GRANDTOTAL 293366.75 356068.88 224673.72 258384.05 15.00 100.00