INDIAS INTERNATIONAL TRADE AND INVESTMENT

AN OVERVIEW

Indias International Trade

Towards Increased Global Integration through Trade
Exports Imports Total

Indias Merchandise Trade Turnover increased from US$95 bn in FY02 to

414

CAGR: 24.5% (2002-08)

30.3%

27.8%

US$ 391 bn in FY08 (CAGR of 27.8%) Indias Exports increased from US$44

312 252 195 114 61 53 142 149 112 78 64 84 103 126 163 186 251

bn in FY02 to US$ 163 bn in FY08 (CAGR of 24.5%) Indias Imports increased from US$ 51 bn to US$ 251 bn (CAGR of 30.3%) Share in world merchandise exports in 2007 1.04%; Rank 26th

95 51 44

FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY 2008

Source: Ministry of Commerce & Industry.

Indias Export: Shifting Southwards

Indias Export Market FY 2001 (US$44 bn) Indias Export Market FY 2008 (US$163 bn)

Af ri c a

4.1

Asia 38.7%

North America 22.4%

Asia 51.7%

Africa 7.1% North America 13.5% LA C 3. 5% Others 0.3%

CIS & Baltics 2.3%

Europe 25.9%

LAC 2.2% Others 4.3%

CIS & Baltics 1.1%

Europe 22.9%

Direction of exports moving towards the Southern countries, particularly Asia. Share of Asia increased from 39% to 52% during 2001 2008. Future trade flows to be geared towards the developing nations (buttressed by GOI policies).

Indias Major Trading Partners

Top Export Markets (FY 2008, US$ bn)
USA UAE China Singapore UK HK Netherlands Germany Belgium Italy 7.4 6.7 6.3 5.2 5.1 4.2 3.9 10.8 15.6 20.7

Top Import Sources (FY 2008, US$ bn)

China USA Saudi Arabia UAE Iran Germany Switzerland Singapore Australia 13.5 10.9 9.9 9.8 8.1 7.8 7.7 Total Imports: US$ 251 bn 21.0 19.4 27.1

Total Exports: US$ 163 bn

Kuwait

Source: Ministry of Commerce & Industry.

Indias Trade Basket

Top Export Items (FY 2008, US$ bn)
Petroleum Prod Gems & Jewellery Machinery & Instr Pharma & Fine Chem RMG Cotton Manuf. of metals Tranport equip Iron ore Cot. yarn & Fabrics Prim & Semi-fin. Iron & Steel

Top Import Items (FY 2008, US$ bn)

Petroleum Crude & Prod Electronic Goods Transport equip Machin. excpt electrcl, electonic Gold Iron & Steel Prls. Prec/Semi Prec Stones Metalifer. ores & metal scrp Organic chem Coal, Coke & Briquittes

28.4 19.7 9.1 7.6 7.5 7.1 7.0 5.8 4.7 4.2

79.6 20.7 20.1 19.9 16.7 8.2 8.0 7.9 7.2 6.4

Source: Ministry of Commerce & Industry.

Indias Trade in Services

Total Trade in Services (US$ bn)
Exports Imports Total

of which Software Exports

40.3

CAGR: 31.3% (2002-08)

24.0%

28.2%

31.3
138 121 92 71 44 35 28 43 58 76 88 50

R AG C

.1% 2 :3
17.7

23.6

12.9 9.9 7.7

31 14 17

38 17 21

44 17 27

FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY 2008

FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008

Source: RBI.

Source: NASSCOM.

Indias Direct Investment Flows

Both foreign direct investment inflows & outflows have shown an increasing trend (US$ mn)
32435

Sectoral pattern of approved Indian OFDI (April-June 2008)

FDI Inflows FDI Outflows

22079

Others 32.3%
18369

Manufacturing 36.9%

13107

10073

6130

6051

Trading 15.3%

4029

5035

4322

NonFinancial Services 12.3%

8961 5043

1490

2000-01

829

2001-02

2002-03

2003-04

1495

Financial Services 3.2%

1892

1770

2004-05

2005-06

2006-07

2007-08 2008-09*

* Apr-Jun Source: RBI Bulletin, October 2008; Online Database on Indian Economy; Exim Bank Analysis.

1797

Indias Overseas Investment

Approved ODI across countries
Total : US$ 3.2 bn (Apr June 2008)
Saudi Arabia 2.5% UAE 8.7% Canada 2.1% Malaysia 2.0% British Virgin Island 1.6%
Switzerland 1.4%

Destinational analysis of Indian approved ODI stock reveals that regional spread countries. Singapore, Netherlands and the US were the largest destinations for Indian approved ODI accounting for 2/3rd of the total, followed by Mauritius and UAE. distribution out across is evenly various

USA 11.2%

Mauritius 9.0%

Netherlands 22.9%

Singapore 32.5%

Others 6.1%

Source: RBI Bulletin, October 2008.

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