recent trends in foreign trade in india since 2000

8/12/2019 Recent Trends in Foreign Trade in India Since 2000

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Recent tr ends in F oreign Tr ade in I ndia since 2000

Trade refers to buying and selling of goods and services for money or money's worth. It involvestransfer or exchange of goods and services for money or money's worth. The manufacturers orproducer produces the goods, then moves on to the wholesaler, then to retailer and finally to the

ultimate consumer.

Trade is essential for satisfaction of human wants, Trade is conducted not only for the sake ofearning profit; it also provides service to the consumers. Trade is an important social activitybecause the society needs uninterrupted supply of goods forever increasing and ever changingbut never ending human wants. Trade has taken birth with the beginning of human life and shallcontinue as long as human life exists on the earth. It enhances the standard of living ofconsumers. Thus we can say that trade is a very important social activity.

Foreign trade is exchange of capital, goods, and services across international borders orterritories. In most countries, it represents a significant share of gross domestic product (GDP).While international trade has been present throughout much of history, its economic, social, and

political importance has been on the rise in recent centuries.

All countries need goods and services to satisfy wants of their people. Production of goods andservices requires resources. Every country has only limited resources. No country can produceall the goods and services that it requires. It has to buy from other countries what it cannotproduce or can produce less than its requirements. Similarly, it sells to other countries the goodswhich it has in surplus quantities. India too, buys from and sells to other countries various typesof goods and services.

Generally no country is self-sufficient. It has to depend upon other countries for importing thegoods which are either non-available with it or are available in insufficient quantities. Similarly,it can export goods, which are in excess quantity with it and are in high demand outside.

International trade means trade between the two or more countries. International trade involvesdifferent currencies of different countries and is regulated by laws, rules and regulations of theconcerned countries. Thus, International trade is more complex.

According to Wasserman and Haltman, International trade consists of transaction betweenresidents of different countries.

According to Anatol Marad, International trade is a trade between nations.

According to Eugeworth, International trade means trade between nations.

Industrialization, advanced transportation, globalization, multinational corporations, andoutsourcing are all having a major impact on the international trade system. Increasinginternational trade is crucial to the continuance of globalization. Without international trade,nations would be limited to the goods and services produced within their own borders.

International trade is in principle not different from domestic trade as the motivation and thebehaviour of parties involved in a trade do not change fundamentally regardless of whether trade


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is across a border or not. The main difference is that international trade is typically more costlythan domestic trade.

The reason is that a border typically imposes additional costs such as tariffs, time costs due toborder delays and costs associated with country differences such as language, the legal system orculture. International trade consists of export trade and import trade. Export involves sale ofgoods and services to other countries. Import consists of purchases from other countries.

International or Foreign trade is recognized as the most significant determinants of economicdevelopment of a country, all over the world. The foreign trade of a country consists of inward(import) and outward (export) movement of goods and services, which results into. outflow andinflow of foreign exchange. Thus it is also called EXIM Trade.

For providing, regulating and creating necessary environment for its orderly growth, several Actshave been put in place. The foreign trade of India is governed by the Foreign Trade(Development & Regulation) Act, 1992 and the rules and orders issued there under. Paymentsfor import and export transactions are governed by Foreign Exchange Management Act, 1999.

Customs Act, 1962 governs the physical movement of goods and services through various modesof transportation.

To make India a quality producer and exporter of goods and services, apart from projecting suchimage, an important ActExports (Quality control & inspection) Act, 1963 has been in vogue.Developmental pace of foreign trade is dependent on the Export-Import Policy adopted by thecountry too. Even the EXIM Policy 2002-2007 lays its stress to simplify procedures, sharply, tofurther reduce transaction costs.

Trade can be divided into following two types:-

1. Internal Trade

Internal trade is also known as Home trade. It is conducted within the political and geographicalboundaries of a country. It can be at local level, regional level or national level. Hence tradecarried on among traders of Delhi, Mumbai, etc. is called home trade.

Internal trade can be further sub-divided into two groups, viz.

Wholesale Trade: It involves buying in large quantities from producers or manufacturers andselling in lots to retailers for resale to consumers. The wholesaler is a link between manufacturerand retailer. A wholesaler occupies prominent position since manufacturers as well as retailersboth are dependent upon him. Wholesaler act as an intermediary between producers and retailers.

Retail Trade: It involves buying in smaller lots from the wholesalers and selling in very smallquantities to the consumers for personal use. The retailer is the last link in the chain ofdistribution. He establishes a link between wholesalers and consumers. There are different typesof retailers small as well as large. Small scale retailers include hawkers, pedlars, general shops,etc.

2. External Trade


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External trade also called asForeign trade.It refers to buying and selling between two or morecountries. For instance, If Mr. who is a trader from Mumbai, sells his goods to Mr. another traderfrom New York then this is an example of foreign trade.

External trade can be further sub-divided into three groups.

Export Trade:When a trader from home country sells his goods to a trader located in anothercountry, it is called export trade. For e.g. a trader from India sells his goods to a trader located inChina.

Import Tr ade:When a trader in home country obtains or purchase goods from a trader located inanother country, it is called import trade. For e.g. a trader from India purchase goods from atrader located in China.

Entrepot Trade:When goods are imported from one country and then re-exported after doingsome processing, it is called entrepot trade. In brief, it can be also called as re-export ofprocessed imported goods. For e.g. an Indian trader (from India) purchase some raw material orspare parts from a Japanese trader (from Japan), then assembles it i.e. convert into finished goodsand then re-export to an American trader (in U.S.A).

BALANCE OF TRADE

The difference between the value of goods and services exported out of a country and the valueof goods and services imported into the country. The balance of trade is the official term for netexports that makes up the balance of payments. The balance of trade can be a "favorable" surplus(exports exceed imports) or an "unfavorable" deficit (imports exceed exports). The officialbalance of trade is separated into the balance of merchandise trade for tangible goods and thebalance of services....

A balance of trade surplus is most favorable to domestic producers responsible for the exports.However, this is also likely to be unfavorable to domestic consumers of the exports who payhigher prices.

Alternatively, a balance of trade deficit is most unfavorable to domestic producers in competitionwith the imports, but it can also be favorable to domestic consumers of the exports who paylower prices.

Need and Importance of Foreign Trade

Following points explain the need and importance of foreign trade to a nation.

1. Division of labour and speciali zation

Foreign trade leads to division of labour and specialization at the world level. Some countrieshave abundant natural resources. They should export raw materials and import finished goodsfrom countries which are advanced in skilled manpower. This gives benefits to all the countriesand thereby leading to division of labour and specialization.
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2. Optimum allocation and uti li zation of resources

Due to specialization, unproductive lines can be eliminated and wastage of resources avoided. Inother words, resources are channelized for the production of only those goods which would givehighest returns. Thus there is rational allocation and utilization of resources at the internationallevel due to foreign trade.

3. Equali ty of pri ces

Prices can be stabilized by foreign trade. It helps to keep the demand and supply position stable,which in turn stabilizes the prices, making allowances for transport and other marketingexpenses.

4. Avail abili ty of multi ple choices

Foreign trade helps in providing a better choice to the consumers. It helps in making availablenew varieties to consumers all over the world.

5. Ensur es qual i ty and standard goods

Foreign trade is highly competitive. To maintain and increase the demand for goods, theexporting countries have to keep up the quality of goods. Thus quality and standardized goodsare produced.

6. Raises standard of li ving of the people

Imports can facilitate standard of living of the people. This is because people can have a choiceof new and better varieties of goods and services. By consuming new and better varieties ofgoods, people can improve their standard of living.

7. Generate employment opportuni ties

Foreign trade helps in generating employment opportunities, by increasing the mobility of labourand resources. It generates direct employment in import sector and indirect employment in othersector of the economy. Such as Industry, Service Sector (insurance, banking, transport,communication), etc.

8. Faci li tate economic development

Imports facilitate economic development of a nation. This is because with the import of capitalgoods and technology, a country can generate growth in all sectors of the economy, i.e.agriculture, industry and service sector.

9. Assistance dur ing natur al calami ties

During natural calamities such as earthquakes, floods, famines, etc., the affected countries facethe problem of shortage of essential goods. Foreign trade enables a country to import food grainsand medicines from other countries to help the affected people.

10. Maintains balance of payment positi on


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Every country has to maintain its balance of payment position. Since, every country has toimport, which results in outflow of foreign exchange, it also deals in export for the inflow offoreign exchange.

11. Br ings reputation and helps earn goodwil l

A country which is involved in exports earns goodwill in the international market. For e.g. Japanhas earned a lot of goodwill in foreign markets due to its exports of quality electronic goods.

12. Promotes Wor ld Peace

Foreign trade brings countries closer. It facilitates transfer of technology and other assistancefrom developed countries to developing countries. It brings different countries closer due toeconomic relations arising out of trade agreements. Thus, foreign trade creates a friendlyatmosphere for avoiding wars and conflicts. It promotes world peace as such countries try tomaintain friendly relations among themselves.

Documents used in foreign trade transactions

The documents are related to either export trade or import trade

1. Indent

Indent is an order placed by the importers to the exports. It contains the essential informationregarding the goods to be imported i.e. quality, quantity, packing, packaging, mode of payment,insurance, price of good, etc.

When the price at which the goods are to be purchased by the importer is clearly stated in anorder (Indent), with no options to the exporter, then it called "Closed Indent".

If the prices are not mentioned by the importer and it is left to the discretion of the exporter, thenit is known as "Open Indent".

Indent can be sent by the importer directly to the exporter or it may be sent through the indentagencies.

2. Mate's Receipt

Mate's Receipt is a receipt issued by Captain / Master / Mate of the ship.

The Mate of the ship after receiving the goods on the board and after inspection of the goodsissues this receipt.

The loading of the goods on the ship is possible only after presentation of 'shipping order'. Mate'sreceipt contains details regarding name of ship, date on which the goods are loaded, descriptionof goods, numbers and marks on the packages, conditions of cargo, etc. This receipt is issued tothe exporter who has to present the mate's receipt in the office of shipping company by which hewill get bill of lading. Mate Receipt may be clean or qualified. It is qualified if there is somedefect in the cargo loaded on the ship, in such case the captain makes adverse remark on thereceipt. In case of clean receipt, the cargo in good condition and the adverse remark is not


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mentioned. The bill of lading is always prepared on the basis of mate's receipt. In short mate'sreceipt is an acknowledgement of the receipt of goods on board of the ship.

3. Bil l of Lading

Bill of lading is one important shipping document necessary and useful in export-import trade

transactions. It is a document issued by the shipping company after the shipment of goods. Insimple, Bill of lading is a contract between the exporter or the shipper and the shipping companyfor the carriage of goods from the port of loading to the port of destination.

Bill of lading is a document to title of goods and is transferable by endorsement and delivery.Hence, it is a semi-negotiable instrument. The bill of lading is prepared on the basis of mate'sreceipt. The importer has to produce this receipt for securing the delivery of goods.

The bill of lading contains following information:-

Name and address of the exporter and the shipper. Name and address of shipping company.

Name and address of importer or agent. Quantity, weight and value of goods sent. Place of loading and port of destination. Date of loading of goods on the ship. Mark description and number of packages. Port at which the goods are to be discharged. Freight paid or to be paid. Signature of the issuing authority with date. Any other relevant details.

Important functions of bill of lading are as follows:-

It is useful to the importer for obtaining delivery of goods from the shipping companyand port authorities.

It is a document of title to goods. A possessor of the bill of lading is entitled to take thedelivery of goods.

It is a semi negotiable document and it is transferable by endorsement and delivery. It is a legal document including the contract for carrying goods. It is a proof of the fact that the goods are handed over to the shipping company for

transportation to the port of destination.

4. Letter of Credit

Letter of Credit is an important document in international trade. It is for safety and security of theexporter as regards payment for the goods to be exported.

Letter of Credit can be defined as "an undertaking by importer's bank stating that payment willbe made to the exporter if the required documents are presented to the bank".

Before executing an export order, the exporter of goods desires to have adequate proof regardingthe credit worthiness of the importer. It is issued by the bank (in the importer's country) in favour


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of the foreign supplier, it contains a guarantee or an undertaking by one bank that the bill ofexchange drawn on the importer will be honored on presentation to the extent of the amountspecified in the letter. Letter of Credit may also be issued on the strength of the business of theimporter with the bank.

The Letter of Credit also contains certain conditions such as date of bill, date for shipment,shipment by approved vessels with approved flags packing, etc.

The advantages of the letter of credit to the exporters are many such as :-

Exporter gets safety and security of payment for the goods exported. The exporter gets discounting facility from the bank. It enables the exporter to take more initiative in promoting exports and earns foreign

exchange for his country.

5. Certi fi cate of Ori gin

Certificate of Origin is an important shipping document sent by the exporter along with the other

document to the importer. This document is showing or giving the information of the fact thatthe goods which are exported are manufactured in a particular country i.e. the document certifiesthat certain goods are manufactured within a specific country only. It is a proof about the originof goods exported. This certificate is generally issued by the "Chamber of Commerce" or"Export Promotion Council" or "Trade Association" or "Such Other recognized body" on behalfof Government. It is issued to the exporter. It is very useful document to save custom/importduties. As a general rule the rate of import duty is not same for imports from all countries. Thegoods imported from some other countries are subject to less import duty. Thus, to get thebenefit of saving import duty the importer can use the Certificate of Origin, because thegovernment of importing country grants concession in import duty to the importer on the basis ofcertificate of origin.

6. Consular I nvoice

Consular Invoice is an important document used in foreign trade. It is issued by the Tradeconsulate of the importing country stationed in the exporters country. Consular is a governmentofficer having office in other countries. This document is also obtained by the exporter and issent to the importer along with other shipping documents. This invoice is also useful for importerat the time of payment of importy duty. For obtaining document from the consular the exporterhas to pay the prescribed fees. This document contains information about goods and the value ofgoods.

Sometimes, the custom authorities desire to open the packages and scrutinize the goods for the

purpose of calculating custom duty. Due to which there is delay in clearing the goods from dockor port. To avoid this, one copy is sent to the custom authorities of the importing country, secondcopy is retained by the consulate office for reference and the third copy is given to the exporterwhich is forwarded by exporter to the importer with other documents.

7. Bil l of Entry


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Bill of entry is a document required in case of import of goods. It is like shipping bill in case ofexports. A Bill of Entry is the document testifying the fact that goods of the stated value anddescription in specified quantity are entering into the country from abroad. The customs officesupplies this form which is prepared in triplicate. Three different colours are used to prepare billof entry. One copy is retained by custom department, other is retained by port trust and the third

is kept by the importer.

The bill of entry is divided into three classes:-

Entry for duty free goods. Entry of goods which are meant for consumption at home. Entry for goods to be re-exported. In India, all these entries are on the same form. The contents of Bill of Entry are :- Name and address of importer. Import License number of importer. Name and address of exporter.

Name of port where goods are to be cleared. Value of goods. Description of goods. Rate and amount of import duty payable. Other relevant details.

8. Dock' s Receipt

Dock authorities issue dock's receipt once the goods are stored in the sheds at the docks. TheClearing and Forwarding agent clears the documents from the customs authorities. Then heapproaches the Port Trust authorities and obtains the Carting Order. The Carting Order is thepermission to cart the goods inside the docks. The goods are then brought inside the docks. Thegoods may be loaded immediately on the ship. Many-a-times immediate loading on ship is notpossible. The goods are then stored in sheds at the port or docks. The dock authorities then issuesthe dock receipt as an acknowledgement for goods received in sheds.

9. Commercial I nvoice

Commercial invoice is a basic export document. It contains all the information, which is requiredfor preparation of all other documents. It is the exporter's bill for goods which the importer has topay.

Commercial invoice contains the following information :-

Name and address of exporter and importer. Description of goods (weight, quality, quantity, rate, etc.) Value of goods after discount, if any. Net amount payable by the importer. Terms and Conditions of sale Other details of shipment to be included are :- Name of ship on which goods are loaded. Letter of Credit Number.


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License number of exporter. Bill of lading number. Packaging Specifications. Shipping terms and Conditions, etc.

8 Salient Features of Foreign Trade of India1. Negative or unfavourable Trade

India had to import various items like heavy machinery, agricultural implements, mineral oil andmetals on a large scale after Independence for economic growth.

But our exports could not keep pace with our imports which left us with negative orunfavourable trade.

2. Diversity in Exports

Previously, India used to export its traditional commodities only which included tea, jute, cotton

textile, leather, etc. But great diversity has been observed in Indias export commodities duringthe last few years. India now exports over 7,500 commodities. Since 1991, India has emerged asa major exporter of computer software and that too to some of the advanced countries like theUSA and Japan.

3. Worldwide Trade:

India had trade links with Britain and a few selected countries only before Independence. Butnow India has trade links with almost all the regions of the world. India exports its goods to asmany as 190 countries and imports from 140 countries.

4. Change in Imports

Earlier we used to import food-grains and manufactured goods only. But now oil is the largestsingle commodity imported by India. Both the imports as well as exports of pearls and preciousstones have increased considerably during the last few years. Our other important commoditiesof import are iron and steel, fertilizers, edible oils and paper.

5. Mar itime Trade

About 95 per cent of our foreign trade is done through sea routes. Trade through land routes ispossible with neighbouring countries only. But unfortunately, all our neighbouring countriesincluding China, Nepal, and Myanmar are cut off from India by lofty mountain ranges whichmake trade by land routes rather difficult. We can have easy access through land routes with

Pakistan only but the trade suffered heavily due to political differences between the twocountries.

6. Trade through a few Selected Ports Onl y

We have only 12 major ports along the coast of India which handle about 90 per cent overseastrade of India. Very small amount of foreign trade is handled by the remaining medium andsmall ports.


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More employment could be generated as the market for the countries goods widens throughtrade. International trade helps generate more employment through the establishment of newerindustries to cater to the demands of various countries. This will help countries to bring-downtheir unemployment rates.

5) Consumption at Cheaper Cost

International trade enables a country to consume things which either cannot be produced withinits borders or production may cost very high. Therefore it becomes cost cheaper to import fromother countries through foreign trade.

6) Reduces Trade Fluctuations

By making the size of the market large with large supplies and extensive demand internationaltrade reduces trade fluctuations. The prices of goods tend to remain more stable.

7) Uti li zation of Surplus Produce

International trade enables different countries to sell their surplus products to other countries andearn foreign exchange.

8) Fosters Peace and Goodwi l l

International trade fosters peace, goodwill, and mutual understanding among nations. Economicinterdependence of countries often leads to close cultural relationship and thus avoid warbetween them.

8 Major Limitations of Foreign Trade

1) Rapid Depletion of Exhaustible Natural Resources

It could lead to a more rapid depletion of exhaustible natural resources.

As countries begin to up their production levels, natural resources tend to get depleted with thetime and it could pose a dangerous threat to the future generation.

2) Import of H armfu l Goods

Foreign trade may lead to import of harmful goods like cigarettes, drugs, etc., which may harmthe health of the residents of the country. For example, the people of China suffered greatlythrough opium imports.

3) I t may Exhaust Resources

International trade leads to intensive cultivation of land. Thus, it has the operations of law ofdiminishing returns in agricultural countries. It also makes a nation poor by giving too muchburden over the resources.

4) Over Special ization

Over specialization may be disastrous for a country. A substitute may appear and ruin theeconomic lives of millions.


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5) Danger of Starvation

A country might depend for its food mainly on foreign countries. In times of war, there is aserious danger of starvation for such countries.

6) One Countr y Gains at the Expense of Other

One of the serious drawbacks of foreign trade is that one country may gain at the expense ofother due to certain accidental advantages. For example, the Industrial revolution is Great Britainruined Indian handicrafts during the nineteenth century.

7) May Lead to War

Foreign trade may lead to war different countries compete with each other in finding out newmarkets and sources of raw material for their industries and frequently come into clash. This wasone of the causes of first and Second World War.

8) Language Diversity

Each country has its own language. As foreign trade involves trade between two or more

countries, there is diversity of languages. This difference in language creates problem in foreigntrade.

The Composition of Indias Foreign Trade

Composition of foreign Indian foreign trade means major commodity or sectors in which India isdoing export and import. India is a very old participant in world trade. Its participation have beenpromoted by the opening of Suez Canal and speedy development of the ship building industrysupplemented by the spread of industrial revolution in Europe and fast expansion of Indianrailways.

Indias merchandise exports reached a level of U.S. $185.3 billion during 2008-09 registering agrowth of 13.6 per cent as compared to a growth of 29.1 per cent during the previous year.Notwithstanding the deceleration of the growth in 2008-09, Indias export-sector has exhibitedremarkable resilience and dynamism in the recent years. Our merchandise exports recorded anAverage Annual Growth Rate (AAGR) of 23.9 per cent during the five year period from 2004-05to 2008-09, as compared to the preceding five years when the exports increased by a lowerAAGR of 14.3 per cent. According to latest WTO data (2009), Indias share in the worldmerchandise exports increased from 0.8 per cent in 2004 to 1.1 per cent in 2008. India alsoimproved its ranking in the leading exporters in world merchandise trade from 30th in 2004 to27th in 2008.The government had initially set an export target of U.S. $200 billion for 2008-09, which was

later revised downward to U.S. $175 billion because of global slowdown in the second half ofthe year. With merchandise exports reaching U.S. $185.3 billion in 2008-09, the actual exportsexceeded the target by 5.9 per cent which is a remarkable achievement during a period ofrecession in countries of Indias major export destinations.

Exports recorded high growth during the first half of 2008-09 although a deceleration waswitnessed during the subsequent months due to global economic slowdown. During 2008-09


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(April-September) exports grew by 48.1 per cent with almost all the major commodity groups,except marine products, handicrafts recording significant growth.

In the second half of the year 2008-09 (October-March), exports declined by (-) 14.7 per centwith almost all the major commodity groups, except gems and jeweler, RMG, electronic goods,

recording significant negative growth. Commodities like engineering goods, other basicchemicals, man-made yarn, leather and leather manufacturers, and spices which recorded overallpositive growth during the year, as a whole, also recorded negative growth during the secondhalf. However, despite the significant decline in the second half of the 2008-09, exportsregistered an overall growth of 13.6 per cent for the year.

Cumulative imports during 2008-09 was U.S. $303.7 billion as against U.S. $251.6 billionduring the corresponding period of the previous year registering a growth of 20.7 per cent in $terms. Oil imports were valued at U.S. $93.7 billion which was 17.4 per cent higher than oilimports valued U.S. $79.8 billion in the corresponding period or previous year. Non-oil importsvalued U.S. $210.0 billion which was 22.2 per cent higher than non-oil imports of U.S. $171.8

billion in previous year.

Exports by Principal Commodities

Disaggregated data on exports by principal commodities, in $ terms, is available for the period2009-10 (April-September) as compared with the corresponding period of the previous year.Exports during the period registered a decline of (-) 29.67 per cent mainly due to significant fallin the exports of engineering goods, gems and jewelry, petroleum products, agriculture and alliedproducts, chemical and related products and ores and minerals.

1) Plantation Crops

Export of plantation crops during 2009-10 (April-September), decreased by 25.8 per cent in U.S.$ terms compared with the corresponding period of the previous year. Export of Coffeeregistered a negative growth of 34.6 per cent, the value increasing from U.S. $610.1 million toU.S. $452.4 million. Export of Tea also decreased by 17.7 per cent.

2) Agri cultur e and All ied Products

Agriculture and allied products as a group include cereals, pulses, tobacco, spices, nuts and

seeds, oil meals, guar gum meals, castor oil, shellac, sugar and molasses, processed food, meatand meat products, etc. During 2009-10 (April-September), exports of commodities under thisgroup registered a negative growth of 34.1 per cent with the value of exports falling from U.S.$8,613.8 million in the previous year to U.S. $5,675.2 million during the current year.

3) Ores and M inerals


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Exports of ores and minerals were estimated at U.S. $2,884.1 million during 2009-10 (April-September) registering a negative growth of 35.5 per cent over the same period of the previousyear. Sub-groups, viz., processed minerals, has recorded a negative growth of 28.9 per cent andcoal a positive growth of 40.4 per cent respectively. Mica has registered negative growth of 27.7per cent.

4) Leather and Leather Manufactures

Export of leather and leather manufactures recorded a negative growth of 24.0 per cent during2009-10 (April-Sep Figure 3.3: Growth (In U.S. S Terms) of Top Five Commodity Groups inIndias Exports: 2008-09 and 2009-10 (Apr-September). The value of exports decreased to U.S.$1,531.0 million from U.S. $2,013.0 million during the same period of the previous year.Exports of leather and manufactures have registered a negative growth of 28.5 per cent andleather footwear also registered a negative growth of 18.2 per cent.

5) Gems and Jewelry

The export of gems and jewelry during 2009-10 (April-September) decreased to U.S. $13,608.4million from U.S. $17,387.7 million during the corresponding period of last year showing anegative growth of 21.7 per cent.

6) Chemical and Related Products

During the period 2009-10 (April-September), the value of exports of chemicals and alliedproducts decreased to U.S. $10,550.0 million from U.S. $13,228.1 million during the sameperiod of the previous year registering a negative growth of 20.2 per cent. Rubber, glass andother products; residual chemicals and allied products and basic chemicals, pharmaceuticals and

cosmetics and plastic and linoleum have also registered a negative growth.

7) Engineeri ng Goods

Items under this group consist of machinery, Iron and Steel and other engineering items. Exportfrom this sector during the period 2009-10 (April-September) stood at U.S. $15,143.7 millioncompared with U.S. $23,214.0 million during the same period of the previous year, registering anegative growth of 34.8 per cent. Export of machine tools and transport equipments haveregistered negative growth of 42.6 and 19.1 per cent respectively.

8) Electronic Goods

During the period 2009-10 (April-September), exports of electronic goods as a group wereestimated at U.S. $3,086.8 million compared with U.S. $3,828.2 million during thecorresponding period of last year, registering a negative growth of 19.4 per cent.

9) Texti les


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During the period 2009-10 (April-September), the value of textiles exports was estimated at U.S.$8,657.3 million compared with U.S. $10,151.5 million in the corresponding period of theprevious year, recording a negative growth of 14.7 per cent. The export of Natural Silk Textilesregistered a negative growth of 31.0 per cent and man-made textiles and made-ups, has shown apositive growth of 2.4 per cent.

10) Handicrafts and Carpets

Exports of handicrafts declined to U.S. $94.6 million during 2009-10 (April-September), fromU.S. $167.2 million during the corresponding period of the previous year registering a negativegrowth of 43.4 per cent. Export of carpets increased marginally to U.S. $437.8 million from U.S.$427.9 million during the same period last year registering a positive growth of 2.3 per cent.

11) Project Goods

During 2009-10 (April-September), the export of project goods were estimated at U.S. $63.5

million compared with U.S. $118.6 million during the corresponding period of last yearregistering a negative growth of 46.4 per cent.

12) Petroleum Products

Export of petroleum products decreased to U.S. $10,579.8 million during 2009-10 (April-September), as compared with U.S. $18,721.4 million during the same period of last yearrecording a negative growth of 43.5 per cent.

13) Cotton Raw Including Waste

There was a negative growth in the exports of cotton raw including waste by 35.3 per cent fromU.S. $400.3 million in 2008-09 (April-September) to U.S. $259.0 million during 2009-10 (April-September).

Imports by Principal Commodities

Disaggregated data on imports by principal commodities, in $ terms, is available for the period2009-10 (April-September), as compared to the corresponding period of the previous year.Imports during the period registered a decline of (-) 23.7 per cent due to a significant fall in theimport of commodities such as Petroleum crude and products, gold, electronics goods,machinery (except electrical and electronics) and Pearls Precious and semi-precious stones, etc.

1) Ferti li zers

During 2009-10 (April-September), import of Fertilizers (manufactured) decreased to U.S.$2781.0 million from U.S. $6947.0 million in April-September 2008 recording a negative growthof 60.0 per cent.

2) Petroleum Crude and Products


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The import of petroleum crude and products stood at U.S. $37386.3 million during April-September, 2009 against U.S. $63284.7 million during the same period of the previous yearregistering a negative growth of 41.0 per cent.

3) Pearl s, Precious, and Semi-Precious Stones

Import of pearls, and precious and semi-precious stones during 2009-10 (April- September)decreased to U.S. $5430.1 million from U.S. $10430.1 million during the corresponding periodof the previous year registering a negative growth of 48.0 per cent.

4) Capital Goods

Import of capital goods, largely comprises of machinery, including transport equipment andelectrical machinery. Import of machine tools, non-electrical machinery, electrical machineryand transport equipment registered a negative growth of 41.1 per cent, 22.6 per cent, 29.2 percent, and 57.3 per cent respectively.

5) Organic and I norganic Chemicals

During 2009-10 (April- September), import of organic and inorganic chemicals decreased toU.S. $5628.6 million from U.S. $7644.5 million during the same period of last year, registering anegative growth of 26.4 per cent. Import of medicinal and pharmaceutical products decreased toU.S. $985.3 million from U.S. $1021.3 million during the corresponding period of last yearregistering a negative growth of 3.5 per cent.

Foreign Trade Performance of India

Indias Exports, Imports and Balance of Trade

The global slowdown had its impact on the economy of almost all the countries, including India.The trade deficit abruptly increased from 356448 crores in 2007-08 to 533681 crores in 2008-09, an increase by almost 50 %. However, it was less by 2.9 % in 2009-10, to be increased againby 4.3 % in 2010-11. As such Indias trade deficit stood at Rs. 518202 crores during2009-10 with values of exports and imports at Rs. 845534 crores and Rs. 1363736 crores respectively.However, as may be seen from Table 3.1 below that the position was different in 2010-11 as thetrade deficit had increased to Rs. 540545 crores with values of exports and imports as Rs.1142922 crores and Rs. 1683467 crores respectively.


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Table 3.1: India's Exports, Imports, and Balance of Trade from 2000-01 to 2010-11

Year Value In Rs. '00 Crores Percentage Growth

Exports Imports Balance Exports Imports Balance

Of Trade Of Trade

2000-01 2035.71 2308.73 -273.02 27.58 7.26 -50.97

2001-02 2090.18 2452.00 -361.82 2.68 6.21 32.53

2002-03 2551.37 2972.06 -420.69 22.06 21.21 16.27

2003-04 2933.67 3591.08 -657.41 14.98 20.83 56.27

2004-05 3753.40 5010.65 -1257.25 27.94 39.53 91.24

2005-06 4564.18 6604.09 -2039.91 21.60 31.80 62.25


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2006-07 5717.79 8405.06 -2687.27 25.28 27.27 31.73

2007-08 6558.64 10123.12 -3564.48 14.71 20.44 32.64

2008-09 8407.55 13744.36 -5336.81 28.19 35.77 49.72

2009-10 8455.34 13637.36 -5182.02 0.57 -0.78 -2.90

2010-11 11429.22 16834.67 -5405.45 35.17 23.45 4.31

Indias imports in 2010-11 was Rs. 1683467 crores compared to Rs. 1363736 crores

in 2009-10, resulting in a positive growth of import (23.45%), although it was negative growth (

0.78%) during 2009- 10. Along with this positive growth in imports, the exports also grewsignificantly (35.17%) during 2010- 11 compared to insignificant growth of 0.57% in 2009-10.


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Major Export DestinationsThe most important destination of Indias exports was UAE during the year2010-11. In factUAE has been the topmost export destination for the last three years with more than 13% sharein each year. In terms of value, Indias exports to UAE exceeded one lakh crores during thesethree years with Rs. 153866 crores in2010-11. Closely following UAE was USA, for which the

exports value stood at Rs. 115212 in 2010-11 with percentage share more than 10% during lastfive (5) years. In fact USA was the topmost export destination prior to UAE. The shares ofexport values to the total exports for both these countries were more than 23 % in 2010- 11 andthe next highest share was that of China RP (6.47 %). However, in terms of annual growth rates,the exports to these top two countries, i.e. UAE and USA are quite significant. The exports toUAE grew by 35.75 % in 2010-11 as compared to insignificant growth (2.83 %) in 2009-10. This was because, in 2008-09, the growth was substantial (75.20%). The growth of exports toUSA was 25.93 % in 2010-11 although it was negative growth (4.19 %) in 2009-10 (Table3.2A). The percentage shares of exports in the total exports to these top two countries, i.e., UAEand USA, during the last five years from 2006-07 to 2010-11 are very contrasting. While theshares of exports to UAE were increasing over the years, those of USA were decreasing during

these years, as may be seen from Table 3.2A. From 2006-07 to 2007-08, USA was the topdestination country for exports and UAE was in the second position. But, from 2008-09 to 2010-11, their positions have changed, thus UAE has replaced USA at the top. However, the thirdpositioned destination country, i.e., China RP was consistent in terms of shares (between 5 to 7%) of exports in the total exports during these years. In terms of shares of exports, the next twotop destination countries after UAE, USA, and China RP, are Hong Kong and Singapore. Whilethe shares of exports to Hong Kong during these years, i.e., from 2006-07 to 2010-11 werearound 4%, those of exports to Singapore were consistently decreasing. Among the top 20Export destinations, the growth of exports in 2010-11 was highest (83.41 %) for South Africafollowed by Indonesia (77.51 %), Brazil (61.34%), Sri Lanka (55.13 %), Belgium (48.38 %), etc.(Table 3.2A).

Values in Rs. Crores % share to total Export Percentage Growth


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Table 3.2A India's Export to some important countries during the period from 2006-07 to 2010-11

Major ExportsTable 3.3 gives the export values of major items during 2006-07 to 2010-11. The most importantitem group exported by India in 2010-11 was Engineering goods with value of exports morethan 2.27 lakh crores and accounting for 19.84 % of Indias total exports. The export of

ry

2006- 2007- 2008- 2009- 2010- 2007- 2008- 2009- 2010-

2006-07 2007-08 2008-09 2009-10 2010-11 07 08 09 10 11 08 09 10 11

B EMTS 54445 62915 110229 113348 153866 9.52 9.59 13.11 13.41 13.46 15.56 75.20 2.83 35.75

85368 83388 96458 92417 115212 14.93 12.71 11.47 10.93 10.08 -2.32 15.67 -4.19 24.67

P RP 37530 43597 42661 54714 70414 6.56 6.65 5.07 6.47 6.16 16.17 -2.15 28.25 28.69

KONG 21179 25385 30391 37301 47038 3.70 3.87 3.61 4.41 4.12 19.86 19.72 22.74 26.11

PORE 27462 29662 37757 35948 44732 4.80 4.52 4.49 4.25 3.91 8.01 27.29 -4.79 24.43

ERLAND 12082 21038 28890 30301 34967 2.11 3.21 3.44 3.58 3.06 74.12 37.32 4.88 15.40

25421 26967 30345 29476 33296 4.45 4.11 3.61 3.49 2.91 6.08 12.52 -2.86 12.96

ANY 18007 20599 29195 25633 30733 3.15 3.14 3.47 3.03 2.69 14.39 41.73 -12.20 19.90

UM 15722 16943 20309 17757 26347 2.75 2.58 2.42 2.10 2.31 7.77 19.87 -12.57 48.38

ESIA 9177 8693 11578 14605 25925 1.60 1.33 1.38 1.73 2.27 -5.28 33.19 26.14 77.51

CE 9506 10454 13777 17999 23688 1.66 1.59 1.64 2.13 2.07 9.97 31.78 30.65 31.60

12954 15516 13808 17143 23183 2.27 2.37 1.64 2.03 2.03 19.78 -11.01 24.15 35.24

ARAB 11711 14923 22940 18552 21296 2.05 2.28 2.73 2.19 1.86 27.42 53.73 -19.13 14.79

16212 15748 17365 16072 20702 2.84 2.40 2.07 1.90 1.81 -2.86 10.27 -7.44 28.81

L 6577 10132 11874 11365 18336 1.15 1.54 1.41 1.34 1.60 54.05 17.20 -4.29 61.34

H AFRICA 10165 10699 8994 9751 17885 1.78 1.63 1.07 1.15 1.56 5.25 -15.93 8.42 83.41

YSIA 5902 10337 15780 13504 17677 1.03 1.58 1.88 1.60 1.55 75.15 52.65 -14.43 30.90

A RP 11379 11482 18354 16127 16965 1.99 1.75 2.18 1.91 1.48 0.90 59.85 -12.13 5.20

NKA DSR 10206 11374 10895 10290 15962 1.79 1.73 1.30 1.22 1.40 11.44 -4.21 -5.56 55.13

LADESH

7366 11743 11317 11501 14753 1.29 1.79 1.35 1.36 1.29 59.43 -3.63 1.62 28.27

xports 571779 655864 840755 845534 1142922 100.00 100.00 100.00 100.00 100.00 14.71 28.19 0.57

35.17


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engineering goods during this period has increased by 46.97 %, as compared to 2009-10 when itwas negative growth (16.13%) at Rs.154320 crores. The main markets for these items aredeveloped countries and emerging economies like China. It is heartening to learn that Indiasexports of these sophisticated manufactured items to major economies have gone up substantiallyin recent years. This indicates the newly gained maturity of Indias manufacturing base.

An obvious development in the field of exports is the recent surge in exports of petroleumproducts. The share of this group in Indias export basket has gone up from 14.78 % in2006-07 to as much as 17.41% in 2007- 08, making it the second most important export item group.After 2007-08 it showed a decrease in terms of its share in total exports to 14.68% in 2008-09 but recorded increases in 2009-10 (15.72 %) and 2010-11 (16.52%). In terms of exportgrowth over the previous year, petroleum products recorded maximum growth in 2010-11(42.05%) and the second most growth in 20007-08 (35.11 %). In between the growths were8.06 % in2008-09 and 7.70% in 2009-10. The major export destinations for this commodityinclude some oil-producing countries like Iran, UAE and Indonesia. The countries likeSingapore, Netherlands, Brazil and Sri Lanka are other important buyers.

Gems and Jewellery is next important item in Indias export basket. Its share in total exports was12.64% in 2006-07 but decreased to 12.16 % in 2007-08. However, it has recorded increases inthe years 2008- 09 (15.29%) and 2009-10 (16.27%). But it has declined in 2010-11 (16.14%).Gems and jewellery are mainly exported to rich countries like USA, UK, Japan, Belgium andSwitzerland, trading nations like Hong Kong and Singapore, and also newly industrialisedcountries like Thailand. UAE is also an important market.

Basic chemicals (Drug, Phrmcutes & Fine Chemicals and other basic chemicals combined) is anarea in which India is consistently doing well as far as exports are concerned. In the recent years,basic chemicals have replaced readymade garments from the fourth most important source of

foreign exchange earner. In 2007-08,basic chemicals accounted for around 8.43 % of Indiastotal value of export. In the next two years it remained at 8.55% and 8.85% in 2008-09 and 2009-10 respectively and thereafter it showed a marginal decrease in 2010- 11(7.70 %).

Traditionally, India has had a comparative advantage in textiles. But the share of this item inIndias total exports is gradually decreasing over the years. The share of this commodity inIndias total volume of export has come down to 5.95 % in 2007-08 from 7.04 % in 2006-07. Ithad marginally increased to 5.98 % and 6.01% in2008-09 and 2009-10 respectively. Thereafter itdeclined again (4.63%) in 2010-11. However, it still continues to be the fourth largest foreignexchange earner for the country when considered basic chemicals separately from other basicchemicals. Indias main markets for this item group are the developed western countries like

USA, UK, Germany, France and Italy and also UAE.

There was a substantial jump in exports share (3.89%) of electronic goods and computersoftware in2008-09 which is maintained steadily till 2010-11. In 2010-11, the share of electronicgoods is 3.27% which is seventh in the all commodity groups.

Indias iron ore export is another commodity group which had increased by leaps and bounds inthe last few years. Although there was increase in growth during 2007-08 (32.53%), a negative


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growth was recorded again in 2008-09 (7.16 %). However, there was again positive growth by30.57% in 2009-10, and negative growth (24.50%) in 2010-11. The reason for these ups anddown situation in exports of iron ore is assumed to be largely on the slowdown in the demandfrom China. Indias main markets for iron ores are USA, China, Belgium, Italy and Spain.

Cotton yarn/fabrics/made-ups handloom products etc., and Man-made yarns/fabrics/made-ups, etc. accounted for 2.44 % and 1.71 % of Indias total exports in2010-11. The percentageshare of cottonyarn/fabrics/made-ups handloom products etc. has decreased steadily over theyears from 2006-07 to 2009-10(from 3.34 % to 2.22 %) but in 2010-11, it has recorded anincrease in share (2.44%). The growth of man-madeyarns/fabrics/made-ups, etc. has shown asteady increase in absolute value terms from 2006-07 to 2010-11.

Share of Export of leather and leather manufactures has been gradually and continuously

declining from 2.32 % in 200607 to 1.52 % in 2010-11. The share of Tea and coffee exportsshowed stagnation over the last five years (between 0.3 to 0.4 %).


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Exports through major PortsAmong Indian ports, Nhava Sheva Sea handles the largest value of cargo export (15.62%in 2010-11).With Mumbai Air, this port handles more than one-fourth share of Indiasmerchandise exports value. Although its share is declining, Nhava Sheva has contributedsubstantially to Indias export during the last five years.

Close behind Nhava Sheva Sea is Mumbai Air, with a share of 9.84 % during 2010-11 andregistering an increase of growth of export value by around 18.75 % as compared to the previousyear. In fact, Nhava Sheva Sea and Mumbai Air are the two most important ports of the countrythat handled more than 30 % of the total exports for four years from 2006-07 to 2009-10 andin 2010-11, their combined share was 25.46%.

The next major port was Chennai Sea. It consistently handled 67 % of the total exports duringthe last five years from 2006-07 to 2010-11. Other major ports handling Indias exports areMundra, Delhi Air, Sikka, Vishakhapatnam Sea, Mumbai Sea, Tuticorin Sea, Kolkata Sea,Kandla Sea, etc.

The SEZs which are contributing maximum in countrys exports are Reliance Jamnagar, SEZSurat, SEZ Cochin, SEZ Nokia Chennai, SEZ Noida, etc.

Values in Rs Crores % share to total exports

Percentage

Growth

2006- 2007- 2008- 2009- 2010- 2007- 2008- 2009- 201Port 2006-07 2007-08 2008-09 2009-10 2010-11 07 08 09 10 11 08 09 10

Nhava sheva sea 113434 126711 150540 154489 178499 19.84 19.32 17.91 18.27 15.62 11.70 18.81 2.62 15.

Mumbai air 68082 80798 88407 94679 112434 11.91 12.32 10.52 11.20 9.84 18.68 9.42 7.09 18.

Chennai sea 44257 44627 58115 59395 66744 7.74 6.80 6.91 7.02 5.84 0.84 30.22 2.20 12.

Mundra 13017 19384 24493 24247 45565 2.28 2.96 2.91 2.87 3.99 48.92 26.35 -1.01 87.Delhi air 13735 14532 34797 35109 43453 2.40 2.22 4.14 4.15 3.80 5.80 139.45 0.90 23.

Sikka 53718 78297 82367 37722 42657 9.39 11.94 9.80 4.46 3.73 45.76 5.20 -54.20 13.

Visakhapatnam sea 8825 9193 12813 11704 30368 1.54 1.40 1.52 1.38 2.66 4.17 39.38 -8.66 159.

Tuticorin sea 19190 19564 20857 19897 27984 3.36 2.98 2.48 2.35 2.45 1.95 6.61 -4.60 40.

Mumbai sea 21379 19448 24689 20691 25548 3.74 2.97 2.94 2.45 2.24 -9.03 26.95 -16.19 23.

Kolkata sea 14855 16428 20606 14928 25371 2.60 2.50 2.45 1.77 2.22 10.59 25.43 -27.55 69.

Bangalore airport 15762 12727 11916 11868 19998 2.76 1.94 1.42 1.40 1.75 -19.25 -6.38 -0.40 68.

Delhi (icd) 17992 15260 13323 13927 19831 3.15 2.33 1.58 1.65 1.74 -15.18 -12.69 4.53 42.

Kakinada sea 4914 8726 15320 8838 18648 0.86 1.33 1.82 1.05 1.63 77.58 75.55 -42.31 111.

Kandla sea 16280 17231 18380 16346 17755 2.85 2.63 2.19 1.93 1.55 5.84 6.67 -11.07 8.

Vadinar 3200 11258 10517 10709 16688 0.56 1.72 1.25 1.27 1.46 251.82 -6.59 1.83 55.

Pipavab(vicyor) 2199 3122 0 7623 15287 0.38 0.48 0.00 0.90 1.34 41.98 -100.00 - 100.

Newmangalore sea 19158 19472 16507 8765 13473 3.35 2.97 1.96 1.04 1.18 1.64 -15.22 -46.90 53.

Paradip sea 3974 7857 8369 7344 12502 0.70 1.20 1.00 0.87 1.09 97.70 6.52 -12.24 70.

Cochin sea 10985 9992 11310 10933 12051 1.92 1.52 1.35 1.29 1.05 -9.04 13.19 -3.34 10.

Chennai air 7571 8004 10108 11873 11661 1.32 1.22 1.20 1.40 1.02 5.72 26.28 17.47 -1.

Total Exports 571779 655864 840755 845534 1142922 100.00 100.00 100.00 100.00 100.00 14.71 28.19 0.57 35.


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Table 3.2B: India's Export through some important ports during last Five years


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Table 3.3: India's Export of major items during the period from 2006-07 to 2010-11

Sl.

Value in Rs. Crores Percentage share in Total ExportsGrowth(%) over the prevear

2006- 2007- 2008- 2009- 2006- 2007- 2008- 2009- 2010- 2007- 2008- 2009- 2

No Item 07 08 09 10 2010-11 07 08 09 10 11 08 09 10 11 Tea 1970 2033 2689 2944 3354 0.34 0.31 0.32 0.35 0.29 3.23 32.25 9.47

2 Coffee 1969 1872 2256 2032 3010 0.34 0.29 0.27 0.24 0.26 -4.91 20.48 -9.92

3 Rice 7036 11755 11164 11255 11586 1.23 1.79 1.33 1.33 1.01 67.08 -5.03 0.81

4 Tobacco 1685 1932 3461 4344 3985 0.29 0.29 0.41 0.51 0.35 14.64 79.15 25.52

5 Spices 3158 5259 6338 6157 8043 0.55 0.80 0.75 0.73 0.70 66.53 20.53 -2.86

6 Cashew 2491 2210 2901 2802 2819 0.44 0.34 0.35 0.33 0.25 -11.30 31.29 -3.43

7 Oil Meals 5504 7981 10269 7832 11070 0.96 1.22 1.22 0.93 0.97 44.99 28.67 -23.74

8 Fruits & Vegetables 3611 3515 5111 5963 5484 0.63 0.54 0.61 0.71 0.48 -2.66 45.41 16.68

9 Marine Products 8001 6927 7066 9900 11917 1.40 1.06 0.84 1.17 1.04 -13.43 2.02 40.10

10 Iron Ore 17656 23400 21725 28366 21416 3.09 3.57 2.58 3.35 1.87 32.53 -7.16 30.57

Mica, Coal & Other Ores,Minerals includingprocessed

11 minerals 14030 13284 14152 12732 17937 2.45 2.03 1.68 1.51 1.57 -5.31 6.53 -10.04

12

Leather & leather

manufactures 13278 13674 15931 15551 17417 2.32 2.08 1.89 1.84 1.52 2.98 16.51 -2.39

13 Gems & Jewellery 72295 79744 128575 137568 184420 12.64 12.16 15.29 16.27 16.14 10.30 61.23 6.99

Drug, Phrmcutes & Fine

14 Chemls 26895 29833 40422 42456 48810 4.70 4.55 4.81 5.02 4.27 10.92 35.49 5.03

15 Other Basic Chemicals 22693 25447 31458 32351 39148 3.97 3.88 3.74 3.83 3.43 12.13 23.62 2.84

16 Engineering Goods 119874 135741 183998 154320 226803 20.97 20.70 21.88 18.25 19.84 13.24 35.55 -16.13

17 Electronic Goods 12916 13508 31301 25895 37378 2.26 2.06 3.72 3.06 3.27 4.59 131.72 -17.27

18 Computer Software 378 592 1557 859 320 0.07 0.09 0.19 0.10 0.03 56.55 162.75 -44.79

Cotton Yarn/Fabs./made-ups

19 handloom products etc. 19089 18534 18930 18732 27936 3.34 2.83 2.25 2.22 2.44 -2.91 2.13 -1.04

Man-

made Yarn/Fabs./made-

20 ups etc. 9975 11663 13919 17092 19490 1.74 1.78 1.66 2.02 1.71 16.93 19.34 22.80

21 RMG of all Textiles 40237 38999 50293 50791 52861 7.04 5.95 5.98 6.01 4.63 -3.08 28.96 0.99

Jute Mfg. including Floor22 Covering 1178 1325 1376 1033 2092 0.21 0.20 0.16 0.12 0.18 12.42 3.85 -24.91

23 Carpet 4199 3929 3565 3482 4718 0.73 0.60 0.42 0.41 0.41 -6.44 -9.26 -2.32

Handicrafts excl. hand

made

24 carpet 1982 2046 1384 1067 1171 0.35 0.31 0.16 0.13 0.10 3.24 -32.35 -22.94

25 Petroleum Products 84520 114192 123398 132899 188779 14.78 17.41 14.68 15.72 16.52 35.11 8.06 7.70 26 Plastic & Linoleum 14718 13227 13817 15913 21297 2.57 2.02 1.64 1.88 1.86 -10.13 4.46 15.17

Subtotals 511339 582621 747057 744335 973262 89.43 88.83 88.86 88.03 85.16 13.94 28.22 -0.36

Total Exports 571779 655864 840755 845534 1142922 100.00 100.00 100.00 100.00 100.00 14.71 28.19 0.57


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Import performance

Major Import SourcesIndias imports from top twenty countries, based on2010-11 figures and covering more than

75% value share of imports, during last five years (from 2006-07 to 2010-11) are presented inTable 3.4A. The table also indicates the percentage share of these countries. It can be seen fromthe table that for the last five years, Indias imports from the Peoples Republic of Chinaremained consistently on top with the percentage shares of imports is about 12% in2010-11. Thepercentage share of import value from China was marginally less than 10 % in the initial year(9.40 % in 2006-07), but it has consistently increased to more than 10% thereafter for the nextthree years and in 2010-11, it is 11.77 %. This indicates the importance of Chinese goods inIndian markets as the shares of imports from the next four major countries during 2010-11 aremuch lessthe UAE has a share of 8.86 %, followed by Switzerland (6.70 %), Saudi Arab(5.52%), and USA (5.43%). The UAE is the second major source of imports for the last twoyears. China, UAE, Switzerland, Saudi Arab and USA remain at the top five countries for the

last two years with combined import shares of 38.28% and 34.34% respectively in 2010-11 and 2009-10. Switzerland was in the fifth position in2009-10, but has occupied the thirdposition pushing Saudi Arab and USA into fourth and fifth positions respectively. However, it isvery significant and important that during the last two years, i.e. in 2009-10 and 2010-11, thecomposition of the top twenty countries remain the same although their relative positions maynot be the same during these two years. Another significant happening among these top twentycountries is that Hong Kong which was in 19th position last year (2009-10) has moved to13th position in this year.

Table 3.4A: Percentage share of import of top 20 major Importer Countries (based on 2010-11 import values)

value in Rs. crores

Country

% of % of % of % o % o

total total total total tota

2010-11 import 2009-10 import 2008-09 import 2007-08 import 2006-07 impo

China P RP 198079 11.77 146049 10.71 147606 10.74 109116 10.78 79009 9.4

UAE 149123 8.86 91799 6.73 105926 7.71 54233 5.36 39175 4.6

Switzerland 112740 6.70 69232 5.08 52703 3.83 39571 3.91 41283 4.9

Saudi Arab 92855 5.52 80664 5.91 89747 6.53 78110 7.72 60562 7.2

USA 91359 5.43 80584 5.91 84818 6.17 84625 8.36 53105 6.3

Germany 54136 3.22 48886 3.58 54922 4.00 39736 3.93 34147 4.0

Iran 49725 2.95 54636 4.01 55822 4.06 43946 4.34 34515 4.1

Australia 49188 2.92 58662 4.30 50497 3.67 31552 3.12 31711 3.7

Nigeria 49005 2.91 34377 2.52 39995 2.91 30663 3.03 31797 3.7

Korea RP 47712 2.83 40551 2.97 39658 2.89 24308 2.40 21747 2.5

Kuwait 46976 2.79 38988 2.86 43199 3.14 30960 3.06 27114 3.2

Indonesia 45136 2.68 41009 3.01 30751 2.24 19421 1.92 18865 2.2

Hong Kong 42825 2.54 22317 1.64 29733 2.16 10867 1.07 11239 1.3

Iraq 40977 2.43 33273 2.44 34285 2.49 27495 2.72 25005 2.9


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Japan 39309 2.34 31894 2.34 35833 2.61 25458 2.51 20795 2.4

Belgium 39179 2.33 28466 2.09 26058 1.90 17546 1.73 18742 2.2

Singapore 32546 1.93 30623 2.25 34529 2.51 32682 3.23 24840 2.9

South Africa 32525 1.93 26900 1.97 24882 1.81 14547 1.44 11184 1.3

Qatar 31036 1.84 22010 1.61 15895 1.16 9889 0.98 9359 1.1

Malaysia 29746 1.77 24494 1.80 32592 2.37 24176 2.39 23959 2.8

Major Countries

1274177 75.69 1005412 73.72 1029452 74.90 748900 73.98 618152 73.5Total

All Countries

1683467 100 1363735 100 1374436 100.00 1012312 100.00 840506 100.0Total

In absolute terms, imports from China has exceeded one lakh crores since 2007-08 and it isnearing two lakhs crores now (Rs. 198079 crores in 2010-11) with 35.63 % growth over 2009-10 (Table 3.4B).

Although there was negative growth in total imports of India by 0.78 % during 2009-10 incomparison to the previous two years (the annual growths were 20.44 % and 35.77 %respectively in 2007-08 and 2008-09), it has again increased by 23.45 % during 2010-11 (Table3.4B). Whereas the negative growth of import for 2009-10 was reflected in the imports fromalmost all major countries except Qatar (38.47 %), Indonesia (33.36 %), Switzerland (31.36 %),Australia (16.17 %), Belgium (9.24 %) and South Africa (8.11 %) where there were positivegrowths over the previous year, the situations are quite different in 2010-11. Significantly, HongKong has performed highest annual growth of import to India during 2010-11 and this has putHong Kong to the 13th position against 19th position in2009-10 among the top 20 major importsources. In the same way, Switzerlands growth was very significant (62.84 %) in2010-

11, which has put it in 3rd position replacing Saudi Arab which is now in 4th position.


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Table 3.4B: Annual growth of import of top 20 major Importer Countries (based on 2010-11 import values)

value in Rs. crores

Country

% of % of % of

2006-07 2007-08 growth 2008-09 growth 2009-10 growth 2010-11 gr

China P RP 79009 109116 38.11 147606 35.27 146049 -1.05 198079 3

UAE 39175 54233 38.44 105926 95.32 91799 -13.34 149123 6

Switzerland 41283 39571 -4.15 52703 33.19 69232 31.36 112740 6

Saudi Arab 60562 78110 28.98 89747 14.90 80664 -10.12 92855 1

USA 53105 84625 59.35 84818 0.23 80584 -4.99 91359 1

Germany 34147 39736 16.37 54922 38.22 48886 -10.99 54136 1

ran 34515 43946 27.32 55822 27.02 54636 -2.12 49725

Australia 31711 31552 -0.50 50497 60.04 58662 16.17 49188 -

Nigeria 31797 30663 -3.57 39995 30.43 34377 -14.05 49005 4Korea RP 21747 24308 11.78 39658 63.15 40551 2.25 47712 1

Kuwait 27114 30960 14.18 43199 39.53 38988 -9.75 46976 2

ndonesia 18865 19421 2.95 30751 58.34 41009 33.36 45136 1

Hong Kong 11239 10867 -3.31 29733 173.61 22317 -24.94 42825 9

raq 25005 27495 9.96 34285 24.70 33273 -2.95 40977 2

apan 20795 25458 22.42 35833 40.75 31894 -10.99 39309 2

Belgium 18742 17546 -6.38 26058 48.51 28466 9.24 39179 3

Singapore 24840 32682 31.57 34529 5.65 30623 -11.31 32546

South Africa 11184 14547 30.07 24882 71.05 26900 8.11 32525 2

Qatar 9359 9889 5.66 15895 60.73 22010 38.47 31036 4

Malaysia 23959 24176 0.91 32592 34.81 24494 -24.85 29746 2

Major618152 748900 1029452 1005412 1274177Countries Total 21.15 37.46 -2.34 2

All Countries

840506 1012312 1374436 1363735 1683467Total 20.44 35.77 -0.78 2

Imports through major ports

Table 3.5A gives the value of Indias imports and the percentage shares through twentymajor ports for the last five years from 2006-07 to 2010-11. It can be seen from the table that thecombined values of imports through these major ports accounts for 82.28 % of total import valueof India, of which top 10 contribute more than 61 % share of import value. Another significant

indication is that these top 10 ports were the major top ten in the last year also although theirrelative positions has changed except Nhava Sheva Sea, Chennai Sea and Chennai Air whorespectively are positioned at 1st, 2nd and 10th. Table 3.5A also shows that the values of importsthrough Nhava Sheva Sea Port were the maximum during the last five years, thus indicating thebusy schedule and importance of the port. The same is true for Chennai Sea port also.Significantly, Delhi Air has occupied the third position from 9 th last year(2009-10) with morethan twice of import value (Rs. 111479 crores) and with highest annual growth of 114.25 % in


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2010-11 (Table 3.5B). Another custom station which has significantly improved through itsgems and jewllery import is ICD/CFS Surat Hira. In 2009-10, it had an import value of Rs.23690 crores with a share of 1.74 %, whereas in2010-11, it has Rs 46698 crores of imports witha share of 2.77 % and an annual growth of 97.12 %. The percentage shares of a few ports,namely, Mumbai Air, Sikka and Kolkata Sea are consistently declining thus indicating that otherports are coming very fast in comparison to these ports. Still the values of imports through theseports are quite significant. In fact the value of import through Mumbai Air customs is more thanone lakh crores (Rs. 107641 crores) which is very significant. The import values and their sharesthrough ports such as Vadinar, Sikka, etc. have increased over the period from 2006-07 to 2010-11. The value shares of imports are consistent at 5 to 8 % over the past five years for these ports.After the inclusion of SEZs and similar custom stations, the imports through these types of portsare also increasing. The most significant custom zone in this regard is SEZ Jamnagar as this porthas emerged as the major port in the recent past. It has improved its position to 6 th with nearlyone lakh crores of petroleum imports (Rs. 97608 crores) and 5.75 % share this year as against7thposition (4.65 %) in 2009-10 with Rs. 63466 crores worth of petroleum import. It is expectedthat in the coming years, more and more SEZs will positioned themselves in the major port list.


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Table 3.5A: Percentage share of Top 20 Major Importer Ports (based on 2010-11 import values) to the total imports

value in Rs. crores

% of % of % of % oftotal total total total %

Port name 2010-11 import 2009-10 import 2008-09 import 2007-08 import 2006-07

Nhava Sheva sea 192668 11.44 147985 10.85 133766 9.73 101027 9.98 80348

Chennai sea 140902 8.37 118141 8.66 124273 9.04 88158 8.71 76064

Delhi air 111479 6.62 52033 3.82 67412 4.90 49289 4.87 46690

Mumbai air 107641 6.39 84525 6.20 71997 5.24 73801 7.29 69480

Vadinar 97608 5.80 82083 6.02 94133 6.85 60130 5.94 42688

SEZ jamnagar

(reliance) 96757 5.75 63466 4.65 9298 0.68 0.00

Mumbai sea 85533 5.08 77964 5.72 83319 6.06 65169 6.44 62533

Sikka 79232 4.71 76197 5.59 86110 6.27 76162 7.52 66551

Kolkata sea 62751 3.73 56316 4.13 71613 5.21 60322 5.96 50869

Chennai air 55148 3.28 50434 3.70 40136 2.92 32078 3.17 28716

ICD/CFS Surat Hira 46698 2.77 23690 1.74 2687 0.20 0.00 16681

Paradip sea 44270 2.63 38219 2.80 24326 1.77 13293 1.31 8044

Kandla sea 41001 2.44 40282 2.95 48703 3.54 31189 3.08 27161

Visakhapatnam sea 39495 2.35 42646 3.13 51969 3.78 33665 3.33 30269

Ahmedabad air cargo

complex 39194 2.33 35748 2.62 20032 1.46 16303 1.61 10496

Mundra 32258 1.92 38277 2.81 55855 4.06 32147 3.18 15298

Cochin sea 30631 1.82 25241 1.85 24911 1.81 20650 2.04 18089

Bangalore airport 27802 1.65 31114 2.28 26870 1.95 29365 2.90 30189 Dahej 27611 1.64 21729 1.59 21776 1.58 18767 1.85

New Mangalore sea 26557 1.58 31201 2.29 34798 2.53 29082 2.87 22398

Major ports total 1385236 82.28 1137291 83.40 1093984 79.60 830597 82.05 702564

All ports total 1683467 100.00 1363735 100.00 1374436 100.00 1012312 100.00 840506

As stated above, Delhi Air has improved its position so far as importing goods through it.

It has recorded (Table 3.5B) the maximum annual growth (114.25 %) of importing cargos

in 2010-11 with value of import at Rs.


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111479 crores. Delhi Air was followed by ICD/CFS Surat Hira in terms of annual growth (97.12%). It was mainly Gold, Diamond and precious materials which were handled by this port. Theincrease in prices of these items globally has contributed an increase of import value through thisport. The annual growth for top five ports is quite consistent.


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Table 3.5B: annual growth of import of Top 20 Major Importer Ports (based on 2010-11 import values)

value in Rs. crores

% % %

Port 2006-07 2007-08 growth 2008-09 growth 2009-10 growth 2010-11 g

Nhava Sheva sea 80348 101027 25.74 133766 32.41 147985 10.63 192668

Chennai sea 76064 88158 15.90 124273 40.97 118141 -4.93 140902

Delhi air 46690 49289 5.57 67412 36.77 52033 -22.81 111479 1

Mumbai air 69480 73801 6.22 71997 -2.44 84525 17.40 107641

Vadinar 42688 60130 40.86 94133 56.55 82083 -12.80 97608

SEZ jamnagar(reliance) 9298 63466 582.58 96757

Mumbai sea 62533 65169 4.22 83319 27.85 77964 -6.43 85533

Sikka 66551 76162 14.44 86110 13.06 76197 -11.51 79232

Kolkata sea 50869 60322 18.58 71613 18.72 56316 -21.36 62751

Chennai air 28716 32078 11.71 40136 25.12 50434 25.66 55148

ICD/CFS Surat Hira 2687 23690 781.65 46698

Paradip sea 8044 13293 65.25 24326 83.00 38219 57.11 44270

Kandla sea 27161 31189 14.83 48703 56.15 40282 -17.29 41001

Visakhapatnam sea 30269 33665 11.22 51969 54.37 42646 -17.94 39495

Ahmedabad air cargo

complex 10496 16303 55.33 20032 22.87 35748 78.45 39194

Mundra 15298 32147 110.14 55855 73.75 38277 -31.47 32258

Cochin sea 18089 20650 14.16 24911 20.63 25241 1.32 30631

Bangalore airport 30189 29365 -2.73 26870 -8.50 31114 15.79 27802

Dehej 16681 18767

12.51

21776 16.03 21729 -0.22 27611 New Mangalore sea 22398 29082 29.84 34798 19.65 31201 -10.34 26557

Major ports total 702564 830597 18.22 1093984 31.71 1137291 3.96 1385236

All ports total 840506 1012312 20.44 1374436 35.77 1363735 -0.78 1683467


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Major Import

Table 3.6A and Table 3.6B present Indias import by principal commodity groups withtheir shares and annual growths respectively during 2004-05 to 2010-11. From Table 3.6A, it isseen that the most important item group imported by India is Petroleum, Crude & Products

(28.65%), followed by Gold and silver (11.50 %), Pearls, precious and semi-precious stones(9.36 %), Machinery, electrical &non-electrical(7.49 %), electronic goods (7.19 %), etc. It isthe imports of Petroleum, Crude & Products and the increasing price of petroleum productsglobally that has changed the scenario of the imports and has put countries such as UAE, SaudiArabia, etc. into the top five countries and other countries like Iran, Indonesia, Iraq, Kuwait, etc.into the top 20 countries over the last five years. Table 3.8A and Table 3.8B present thepetroleum products (POL) imported from these petroleum products exporter countries and thetotal import values from these countries. It can be seen from this table that these countries aresignificant mainly for POL imports.

As can be seen from Table 3.6A that although the petroleum import has been more than30 % since 2006-07,it came down slightly during 2010-11 with a share of 28.65 %. During 2004-

05 and 2005-06 shares of imports of POL were 26.76 % and 29.47 % respectively. Although thegrowth of POL import was negative during 2009-10 (Table 3.7), it again increased during 2010-11.


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The effects of POL and Non-POL imports vis--vis total imports during last three years

from 2007-08 to2009-10 is presented in Table 3.7.

Table 3.7 : Value, percentage share and percentage growth of POL, Non-POL items of imports for2008-

09, 2009-10 and 2010-11

Itemvalue in Rs. crores Percentage share in Total Percentage growth

2008-09 2009-10 2010-11 2008-09 2009-10 2010-11 2008-09 2009-10 201

POL 419946 411649 482282 30.55 30.19 28.65 30.97 1.98 1

Non-POL 954489 952087 1201185 69.45 69.81 71.35 38.00 0.25 2

Total 1374435 1363736 1683467 100.00 100.00 100.00 35.77 0.78 2


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Gold & Silver, the second most important item group after Petroleum, Crude &Products. It has a share of 11.50 % to the total imports in2010-11 whereas it was 10.30 % to thetotal imports in 2009-10 (Table 3.6A). After2003-04, when the total value of Gold & Silverimport was Rs. 31506 crores, it increased substantially to Rs. 50098 crores in 2004-05, a growthof 59.01 %. However, after 2004-05, this item group had a steady percentage shares of about 7

8% for next three years, i.e., for 2005-06, 2006-07 and 2007-08. In 2008-09, the Gold & Silverimport shoot up to Rs. 100467 crores value of import with an annual growth of 39.67 % (Table3.6B). The trend continued in2009-10 also, but in 2010-11, the growth of Gold & Silver importwas slightly less (37.83 %) although it was Rs. 193562 crores in absolute value, thus indicatingthat this commodity group is likely cross the 2 lakhs crores of import value next year.

The item group Pearls, precious & semi-precious stones, which was sharing 5.62 % ofthe total imports in2009-10 and was the fifth in the commodity group, has made significantprogress in import values at Rs. 157596 crores with a share of 9.36 % and with an annual growthof 105.53 % in 2010-11, thus recording the second highest growth after Textile Yarn Fabric,etc. (Table 3.6B). Such growth was noticed in 2008-09 when the annual growth was recorded as137.06 %. There was a steady decline of percentage shares of this item group from 8.45 % in2004- 05, 6.12 % in 2005-06, 4.03 % in 2006-07 to 3.17 % in 2007-08, but it again increased to5.54 % in 2008-09 and 5.62 % in 2009-10. However, the growth was only 0.72 % in 2009-10.

Machinery, electrical andnon-electrical machinery comes fourth in terms of share andvalues of imports are concerned. It contributes 7.49 % in the total merchandise imports with avalue of Rs. 126162 crores during 2010- 11, a slight decrease in share compare to 2009-10 whenits share was 7.93 % in the total merchandise imports with a value of Rs. 108154 crores.Although the annual growth is recorded as 16.65 % in 2010-11, there was a negative growth(6.58 %) of import of this commodity group in 2009-10. It can also be seen that there is a steadydecrease of imports of Machinery, electrical andnon-electrical machinery items over the lastfive years from 2005-06 to 2009- 10 (Table 3.6B).

Electronic Goods is the fifth important item group. Its share of value to the totalimports, although is declining over the years but is steady between 7 8 % over the years.In 2010-11, it has import share of 7.19 %, slightly less than the previous year which was 7.29 %.Although, there was negative annual growth of 7.20 % in2009-10, it has significantly positiveannual growth of 21.72 % in 2010-11.

Besides these five major commodity groups with larger shares of imports, the commoditygroup that has significant growth of import value in 2010-11 was Textile yarn Fabric,made-up articles with an annual growth of 156.41 %, although there was negative growth (51.90 %)of this commodity group in 2009-10. Other commodity groups which recorded significantpositive growths in 2010-11 against negative growths in 2009-10 are Newsprint (66.64 %in 2010-11 and39.67 % in 2009-10), Sulphur & Unroasted Iron Pyrts (61.14 % in 2010-11 and76.28 % in 2009-10), Machine tools (30.82 % in 2010-11 and 24.24 % in 2009-10), Non-ferrous metals (30.33 % in 2010- 11 and46.56% in 2009-10), etc. The commodity groups likeArtificial resins, plastic material etc. (32.22 % in 2010-11and 30.74 % in 2009-10), and Projectgoods (26.01 % in 2010-11 and 51.46 % in 2009-10) have recorded high positive growths in boththe years 2009-10 and 2010-11.

Import of Petroleum Products


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Due to increase of petroleum prices globally, the value of import of petroleum productshas increased. As a result, the import scenario in terms of percentage shares of item groups,sources countries, major port formation, etc. has changed. Table 3.8A shows the value andpercentage shares of top 10 major countries from where petroleum products have been importedduring last three years. Table3.8B shows the value and growth of import of petroleum productsover previous year for these countries. It may be seen from the Table 3.8A that the top 10countries from where petroleum products have been imported, have shares of about 80 %, 78 %,and 81 % of the total petroleum products imported to India during 2008-09, 2009-10,and 2010-11 respectively. Of these 10 countries, the top 6 countries, namely Saudi Arabia, Nigeria,Kuwait, UAE, Iran, and Iraq have combined shares of about 70 %, 62 %, and 62 % of totalimports of petroleum products in 2008-09, 2009-10 and 2010-11respectively with Saudi Arab atthe top. It has very significant shares of 19.64 %, 17.63 % and 16.94 % during 2008-09, 2009-10 and 2010-11respectively. As may be seen from the table, all the top 6 countries mentionedabove have recorded shares of imports of petroleum products more than 8 % in these three years.

Table 3.8A: Petroleum import from 10 major countries during 2008-09, 2009-10 and 2010-11

value in Rs. crores

Country 2010-11 % share 2009-10 % share 2008-09 % share

Saudi Arab 81694 16.94 72586 17.63 82488 19.64

Nigeria 48425 10.04 33965 8.25 39628 9.44Kuwait 44313 9.19 37391 9.08 41401 9.86

UAE 42791 8.87 30342 7.37 46084 10.97

Iran 42547 8.82 48922 11.88 50693 12.07

Iraq 40734 8.45 33057 8.03 34063 8.11

Qatar 27588 5.72 19429 4.72 13160 3.13

Venezuela 23720 4.92 13329 3.24 18447 4.39

Angola 23169 4.80 19987 4.86 6499 1.55

Oman 14943 3.10 13601 3.30 2811 0.67

Major countries total 389924 80.85 322609 78.36 335274 79.83

All countries total 482282 100.00 411649 100.00 419968 100.00


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Table 3.8B: Petroleum import from 10 major countries during 2008-09, 2009-10 and 2010-11

value in Rs. crores

Country 2008-09 2009-10 % growth 2010-11 % growth

Saudi Arab 82488 72586 -12.00 81694 12.55

Nigeria 39628 33965 -14.29 48425 42.57Kuwait 41401 37391 -9.69 44313 18.51

UAE 46084 30342 -34.16 42791 41.03

Iran 50693 48922 -3.49 42547 -13.03

Iraq 34063 33057 -2.95 40734 23.22

Qatar 13160 19429 47.64 27588 41.99

Venezuela 18447 13329 -27.74 23720 77.96

Angola 6499 19987 207.54 23169 15.92

Oman 2811 13601 383.85 14943 9.87

Major countries total 335274 322609 -3.78 389924 20.87

All countries total 419968 411649 -1.98 482282 17.16


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Table 3.6A: Percentage share of imports by Principal Commodities (based on 2010-11 import values) to the

total imports

value in Rs.

crores

Commodities % o % of % o % o % of % of total total total total total total

2010-11 import 2009-10 import2008-

09 import2007-

08 import2006-

07 import2005-

06 import2004-

05 im

Cotton Raw & Waste 624 0.04 1241 0.09 1690 0.12 912 0.09 663 0.08 704 0.11 1136

Vegetable Oil (Fixed) 29860 1.77 26483 1.94 15819 1.15 10301 1.02 9540 1.14 8961 1.36 11077

Pulses 7150 0.42

Pulp and Waste paper 5208 0.31 4178 0.31 3681 0.27 3132 0.31 2893 0.34 2537 0.38 2199


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Textile yarnFabric, made-up

13759 0.82 5366 0.39 11156 0.81 9510 0.94 9400 1.12 8827 1.34 6910 articles

Fertilisers, Crude &

manufactures 31533 1.87 31755 2.33 59569 4.33 20307 2.01 13732 1.63 8815 1.33 5612

Sulphur & Unroasted

Iron Pyrts 1099 0.07 682 0.05 2875 0.21 1457 0.14 495 0.06 602 0.09 576 Metaliferrous ores &

metal scrap 44217 2.63 36450 2.67 36331 2.64 31854 3.15 37764 4.49 17186 2.60 11091

Coal, Coke & Briquettes,

etc. 44670 2.65 42511 3.12 45948 3.34 25862 2.55 20710 2.46 17128 2.59 14371

Petroleum, Crude &

products 482282 28.65 411649 30.19 419946 30.55 320655 31.68 258572 30.76 194640 29.47 134094 2

Wood & Wood products 7396 0.44 7461 0.55 6035 0.44 5456 0.54 4684 0.56 4103 0.62 3995

Organic & Inorganic

Chemicals 69350 4.12 56473 4.14 56016 4.08 39883 3.94 35433 4.22 30921 4.68 25610

Dyeing/tanning/colouring

mtrls. 5368 0.32 4284 0.31 3782 0.28 3000 0.30 2695 0.32 2226 0.34 1853

Artificial resins, plastic

materials,31304 1.86 23675 1.74 18109 1.32 14839 1.47 11696 1.39 10040 1.52 6546 etc.

Chemical material &

products 13278 0.79 10874 0.80 9614 0.70 6544 0.65 5980 0.71 4660 0.71 3681

Newsprint 3741 0.22 2245 0.16 3720 0.27 2227 0.22 2407 0.29 1933 0.29 1766

Pearls, precious & Semi-

precious

157596 9.36stones 76678 5.62 76130 5.54 32114 3.17 33881 4.03 40441 6.12 42338

Iron & Steel 47275 2.81 39098 2.87 43531 3.17 34987 3.46 29071 3.46 20243 3.07 11995

Non-ferrous metals 18590 1.10 14264 1.05 26203 1.91 14116 1.39 11787 1.40 8166 1.24 5887

Machine tools 10276 0.61 7855 0.58 10369 0.75 8890 0.88 6703 0.80 4765 0.72 2788

Machinery, electrical &

non-

126162 7.49electrical 108154 7.93 115770 8.42 92007 9.09 71540 8.51 50977 7.72 36003

Transport equipment 52112 3.10 55472 4.07 60803 4.42 80981 8.00 42709 5.08 39131 5.93 19444

Project goods 27996 1.66 22217 1.63 14668 1.07 5208 0.51 8126 0.97 3908 0.59 2679

Professional instrument,

Optical

19200 1.14goods, etc. 17157 1.26 20211 1.47 12349 1.22 10593 1.26 8734 1.32 6876

Electronic goods 121017 7.19 99419 7.29 107128 7.79 83138 8.21 72275 8.60 58626 8.88 44901

Medcnl. &Pharmaceutical

11114 0.66 9959 0.73 8649 0.63 6734 0.67 5866 0.70 4551 0.69 3169 products

Gold & Silver 193562 11.50 140440 10.30 100467 7.31 71934 7.11 66272 7.88 50108 7.59 50098 1

Total Import 1683467 100.00 1363736 100.00 1374435 100.00 1012312 100.00 840506 100.00 660409 100.00 501065 10


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Table 3.6B: Percentage share of imports by Principal Commodities (based on 2010-11 import values) to the

total imports

Commoditiesvalue in Rs. crores

% % % % % %

2010-11 growth 2009-10 growth 2008-09 growth 2007-08 growth

2006-

07 growth

2005-

06 growth

2

Cotton Raw & Waste 624 -49.72 1241-

26.57 1690 85.31 912 37.56 663 -5.82 704 -38.03

Vegetable Oil (Fixed) 29860 12.75 26483 67.41 15819 53.57 10301 7.98 9540 6.46 8961 -19.10 1

Pulses 7150

Pulp and Waste paper 5208 24.65 4178 13.50 3681 17.53 3132 8.26 2893 14.03 2537 15.37 2


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Textile yarn Fabric, made-up

13759articles 156.41 5366-

51.90 11156 17.31 9510 1.17 9400 6.49 8827 27.74 6

Fertilisers, Crude &

31533 31755 59569 20307 13732 8815 5manufactures -0.70

-

46.69 193.34 47.88 55.78 57.07

Sulphur & Unroasted Iron

Pyrts 1099 61.14 682-

76.28 2875 97.32 1457 194.34 495 -17.77 602 4.51

Metaliferrous ores &metal

44217scrap 21.31 36450 0.33 36331 14.05 31854 -15.65 37764 119.74 17186 54.95 1

Coal, Coke & Briquettes,

etc. 44670 5.08 42511 -7.48 45948 77.67 25862 24.88 20710 20.91 17128 19.18 14

Petroleum, Crude &

products 482282 17.16 411649 -1.98 419946 30.97 320655 24.01 258572 32.85 194640 45.15 134

Wood & Wood products 7396 -0.87 7461 23.63 6035 10.61 5456 16.48 4684 14.16 4103 2.70 3

Organic & Inorganic

Chemicals 69350 22.80 56473 0.82 56016 40.45 39883 12.56 35433 14.59 30921 20.74 25

Dyeing/tanning/colouringmtrls. 5368 25.30 4284 13.27 3782 26.07 3000 11.32 2695 21.07 2226 20.13Artificial resins, plastic

31304materials, etc. 32.22 23675 30.74 18109 22.04 14839 26.87 11696 16.49 10040 53.38 6

Chemical material &

products 13278 22.11 10874 13.11 9614 46.91 6544 9.43 5980 28.33 4660 26.60 3

Newsprint 3741 66.64 2245-

39.65 3720 67.04 2227 -7.48 2407 24.52 1933 9.46

Pearls, precious & Semi-

157596precious stones 105.53 76678 0.72 76130 137.06 32114 -5.22 33881 -16.22 40441 -4.48 42

Iron & Steel 47275 20.91 39098-

10.18 43531 24.42 34987 20.35 29071 43.61 20243 68.76 1

Non-ferrous metals 18590 30.33 14264-

45.56 26203 85.63 14116 19.76 11787 44.34 8166 38.71 5

Machine tools 10276 30.82 7855-

24.25 10369 16.64 8890 32.63 6703 40.67 4765 70.91 2

Machinery, electrical &non-

126162electrical 16.65 108154 -6.58 115770 25.83 92007 28.61 71540 40.34 50977 41.59 36

Transport equipment 52112 -6.06 55472 -8.77 60803 -24.92 80981 89.61 42709 9.14 39131 101.25 19

Project goods 27996 26.01 22217 51.47 14668 181.64 5208 -35.91 8126 107.93 3908 45.88 2

Professional instrument,

Optical

19200 17157 20211 12349 10593 8734 6goods, etc. 11.91-

15.11 63.67 16.58 21.28 27.02

Electronic goods 121017 21.72 99419 -7.20 107128 28.86 83138 15.03 72275 23.28 58626 30.57 44Medcnl. &Pharmaceutical

11114products 11.60 9959 15.15 8649 28.44 6734 14.80 5866 28.89 4551 43.61 3

Gold & Silver 193562 37.83 140440 39.79 100467 39.67 71934 8.54 66272 32.26 50108 0.02 50

Total Import 1683467 23.45 1363736 -0.78 1374435 35.77 1012312 20.44 840506 27.27 660409 31.80 501


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Conclusion

Composition of Indias Foreign Trade has undergone a positive change. IT is a remarkable

achievement that India has transformed itself from a predominately primary goods exporting

country into non primary goods exporting country. Under Imports also Indias dependence on

food grains and capital goods has declined.

After the implementation of the foreign trade policy, the import and export among foreign

countries have increased and have become more secured.

Setting up of EPZ and SEZ has also increased the foreign investors.

Trading Housing have given a platform to both manufactures and consumers to freely and easily

trade between different countries.