You are on page 1of 48

TABLE OF CONTENT INTRODUCTION STUDY AREA:OBJECTIVES:DATA AND RESEARCH METHODOLOGY:SOURCE:EXPORTS:IMPORTS:TRADE BALANCE:INTRODUCTION MEANINGS OF INTERNATIONAL TRADE:BENEFITS OF INTERNATIONAL TRADE TRENDS

IN INDIA'S FOREIGN TRADE POLICY INDIAS TRADE PERFORMANCE WORLD TRADE SCENARIO EXPORTS IMPORTS TRADE BALANCE FOREIGN TRADE POLICY, 2009-14 EXPORTS OF PRINCIPAL COMMODITIES
PLANTATION CROPS AGRICULTURE AND ALLIED PRODUCTS ORES AND MINERALS LEATHER AND LEATHER MANUFACTURES GEMS AND JEWELERS CHEMICALS AND RELATED PRODUCTS ENGINEERING GOODS ELECTRONIC GOODS

3 3 3 3 7 7 7 8 10 12 14 16 17 17 18 19 20 21 21
23 23 23 23 24 24 24 25

pg. 1

TEXTILES HANDICRAFTS AND CARPETS PROJECT GOODS PETROLEUM PRODUCTS COTTON RAW INCLUDING WASTE

25 25 25 26 26

IMPORTS OF PRINCIPAL COMMODITIES


FERTILIZERS PETROLEUM CRUDE & PRODUCTS PEARLS, PRECIOUS AND SEMI-PRECIOUS STONES CAPITAL GOODS ORGANIC AND INORGANIC CHEMICALS COAL, COKE & BRIQUETTES GOLD & SILVER DIRECTION OF INDIAS FOREIGN TRADE

26
27 28 28 28 28 29 29 29

FINDINGS & CONCLUSIONS TRENDS IN EXPORT TRENDS IN IMPORT BIBLIOGRAPHY:-

31 37 44 47

pg. 2

INTRODUCTION
Since independence the number of changes has been took place in all most all sectors of the Indian economy, As far as foreign trader is concerned India has adopted an inward-oriented restrictive trade policy till 1960"s. Since 1960"s, India has adopted the import substitution policy, however the liberalisation era was started in 1970"s, but it is a mild in nature, in the late 1980"s and early 1990"s the drastic changes have been took place under the leadership of our late Prime Minister Mr. P.V.NarshimhaRao, and the finance minister Dr. Manmohan Singh. Indian economy has shifted towards the globalization and our economy is linked with world economy. During 1950-1951 to 2003-2004 the Govt, of India have been implemented number of foreign trade policies, these policies have brought a tremendous changes in Indians foreign trade.

Study area:In the present work an attempt has been made to the study the Trends in Indias foreign trade since planning period In order to study the trends in foreign trade the three components of trade are considered i.e. Exports, Imports, Trade balance .

Objectives:To examine the impact of Govt, foreign trade policy on (A) Exports (B) Imports (C) Trade balance

Data and research methodology:The entire data used for the present study have been obtained from the secondary sources; the data required for the analysis of different periods are collected from the following sources. 1. R.B.I. Annual Reports and Monthly Reports various issues 2. Economic and Political Weekly - Various issues.

pg. 3

3. Foreign Trade Review various issues 4. Internet.etc 5. Economic surveys- Ministry of finance, Govt of India various issues. As far as research methodology is concerned the data has been analyzed by using simple to moderate statistical tools like Averages, Percentages, and Graphs are used for analyzing the data. International trade or foreign trade implies that the trade between two or more countries. It is one of the important macro- fundamental variables of an Economy. The Foreign trade is considered as Engine of growth this Engine of growth is depend upon the various factors such as the ratio of foreign trade of an economy with world trade, terms of trade, volume of export, volume of import and trade balance etc. As far as foreign trade policy is concerned number of changes have been took place during the planning period i.e. 1951-1952 onwards In the initial period of planning India has adopted restrictive trade and import substitution policy till 1970s during this period public sector has assigned a major role to play in economic development of the country, on the other hand private sector play its role with regulation However, at the end of 1970s and beginning of 1980s India has changed its foreign trade policy from restrictive trade to liberal trade policy During 1980s and 1990s the drastic changes have been took place in the economies of the world. Economic power centres in the world have shifted over the years and the Engine of growth has also altered, the late 1980s and early 1990s have seen a new wave towards globalisation of finance and greater integration of production through trade under different political conditions including trade policies in order to share the benefits of globalisation. Since planning period Indias foreign trade has passed through the above mentioned foreign trade policies which has impacted on the volume of imports, exports, trade balance etc. Impact of foreign trade policy on Indias foreign trade is shown in the following table and graphs.

pg. 4

Table showing volume of exports, imports, trade balance during pre and post liberalization period
YEAR 1 EXPORT 2 IMPORT 3 TRADE BALANCE 4

1950-51 1951-52 1952-53 1953-54 1954-55 1955-56 1956-57 1957-58 1958-59 1959-60 1960-61 1961-62 1962-63 1963-64 1964-65 1965-66 1966-67 1967-68 1968-69 1969-70 1970-71 1971-72 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88

606 716 578 531 593 609 605 561 581 640 642 660 685 793 816 810 1157 1199 1358 1413 1535 1608 1971 2523 3329 4036 5142 5408 5726 6418 6711 7806 8803 9771 11744 10895 12452 15674

608 890 702 610 700 774 841 1035 906 961 1122 1090 1131 1223 1349 1409 2078 2008 1909 1582 1634 1825 1867 2955 4519 5265 5074 6020 6811 9143 12549 13608 14293 15831 17143 19658 20096 22244

-2 -174 -124 -79 -107 -165 -236 -474 -325 -321 -480 -430 -446 -430 -533 -599 -921 -809 -551 -169 -99 -217 104 -432 -1190 -1229 68 -612 -1025 -2725 -5835 -5802 -5490 -6060 -5399 -8763 -7644 -6570

pg. 5

1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04

20232 27658 32533 44041 53688 69751 82674 106465 118817 130100 139753 159561 203571 209018 255137 283605

28235 35328 43198 47851 63375 73101 89971 121647 138919 154176 178332 215236 230872 245199 291133 346474

-8003 -7670 -10645 -3810 -9687 -3350 -7298 -15182 -20102 -24067 -38579 -55675 -27301 -36181 -35996 -62869

Graph showing volume of exports, imports and trade balance since

pg. 6

Source:1) Economic survey Govt of India 2002-2003 Table No.6.3 Page.No.101 2) Annual Report RBI 20032004. Page No.94. 3) Economic and Political Weekly May 15-21. 2003- 2004 Page 1982. In the above table and graph the volume of export, imports and trade balance is shown from 1950-51 to2003-2004. Since planning period there is increase in the volume of all factors either positively or negatively.

Exports:In the year 1950-51 the volume of exports were Rs.606/-crores and it has increased up to Rs.1413/- crores in 1969-1970 in the initial years of pre liberalization period the volume of exports have been increased gradually, However in the liberalization period volume of exports has been increased up to Rs1531/- in 1970-71, in 1989-90 it has increased up to Rs27658/-crores in the post liberalization period the volume of exports has increased up to Rs283605/-crores i.e. In 2003-2004.

Imports:In the initial year of planning period the volume of imports were Rs608/-crores i.e. is in 1950-51, after two decades it has increased up toRs1582/- crores in 1969-70, during the liberalization period the volume of imports has increased from Rs.1634/-crores in197172 to Rs.35328/- in 1989-90, in post reform period it has increased from RS44041/- crores to Rs.346474/- crores in 2003-04.

pg. 7

Trade balance:The volume of trade balance of India has remained always negative (i.e. Due to the volume of imports exceeds the volume of exports) expect for only two years trade balance of India has remained positive i.e. is in the year 1972-73 and 1976-77. The volume of trade balance was Rs 2/-crores in1950-51, and it was increased up to Rs.-169/- in 1969- 70, however there is a continuously increase in the negative volume of trade balance in pre-reform period it was Rs.7670/- in1989-90 crores, and in post reform period it has increased up toRs.-62869/- crores i.e. is in2003-2004.

pg. 8

INTRODUCTION

pg. 9

INTRODUCTION
The economy of India is the 12th largest economy in the world by market exchange rates and the 4th largest by Purchasing Power Parity (PPP). In 1990s, following the economic reforms from a socialist-inspired economy, the country began to experience swift economic growth, as market opened for international competition. In the 21st century, India is an emerging power with vast human and natural resources, and huge knowledge base. Economists predict that by 2020, India will be among the largest economies of the world. India was under socialistic democratic-based policies from 1947 to 1991. The economy was characterized by regulations and public ownership, leading to corruption and slow growth rate. Since 1991 continuing economic liberalization has moved the economy towards a market based system. A revival of economic reforms and better economic policy in 2000s accelerated India's economic growth. In 2008 India established itself as the world's 2nd largest growing economy. However, year 2009 saw a significant slowdown in India's official GDP growth rate to 6.1% as well as the return of a large projected fiscal deficit of 10.3% of GDP. The international trade has been growing faster than world output indicates that the international market is expanding faster than the domestic markets. There are indeed many Indian firms too whose foreign business is growing faster than the domestic business. This is manifested/ necessitated/ facilitated by the following facts: (a) The Competitive business Environment (b) Globalization (c) The universal liberalization Policy.

pg. 10

Table-1 shows the growth of world merchandise exports. The table indicates that during 195060, the value of world exports become double. In the next 10 years it increased nearly 2 times. During 1970s, the value of the world exports increased by about 5 times. Worldwide inflation, particularly the successive hikes in oil prices, significantly contributed to sharp increase in the value of exports. During 1980-90, the value of world exports increased by 80%. Between 19902000, it increased by over 90%. In fact, exports of developing countries have been increasing faster than those of the developed. The Second half of the 20th century has seen trade expansion substantially faster than output. In the last two decades of the 20th century, world trade has grown twice as fast as world real GDP (6%versus 3%).India presented an interesting case. There was near stagnation in its foreign trade-GDP ratio for about four decades since the commencement of development planning. During this period it was around 15%. The inward looking economic policy, import compression and slow progress on the export front were responsible. Since the economic liberalization, in 1991 there has however, been an increase in Indias foreign trade-GDP ratio it is about 20% now.

pg. 11

Meanings of International Trade:Internal trade refers to the exchange of goods and services between the buyers and sellers within the political boundaries of the same country. It may be carried on either as a wholesale trade or a retail trade. External trade or international trade, is the trade between different countries i.e. it extends beyond the political boundaries of the countries. In other words, it is the trade between two countries. Hence, it is also known as foreign trade. Trading with nations beyond the seas is however not new to Indians. Evidences about our international trade are found in the ancient literatures of our country. But the volume of such trade was insignificant and continued to remain so tight through the middle ages and up to the advent of the British rule in India. It is only after the British rule that Indias foreign trade took a definite shape. International trade on large scale has become a phenomenon of the 20th century especially after the IInd World War. There is practically no country today, which is functioning as a closed system. Even socialist countries like Russia and China are now taking concrete steps to capture foreign markets for the products produced in their country. International trade, thus, has become as essential ingredient of the normal economic life of any country.

Similarities and Differences between Internal and International Trade:The general procedure and operations are similar to both internal trade and international trade. The following are the similarities between the two:1. Satisfaction of Consumer: In domestic trade and in international trade, success depends upon effectively satisfying the basic requirements of the consumers. 2. Goodwill Creation: It is necessary to build goodwill both in the domestic market as well as in the international market. If a firm is able to develop goodwill of the consumers, its task will be much simpler than the one, which is not able to build up its own reputation. In both the cases, the seller should take all positive measures to gain the confidence of the consumers in his product. 3. Market Research: The marketing program should be formulated after a careful market research. Failure to assess the target market shall ultimately bring failure in the task of marketing.

pg. 12

4. Product Planning and Development: Research and development with a view to product improvement is necessary in both internal and international trade. The marketer should keep a constant watch over the changes occurring in the consumers tastes and the preferences and develop or modify his product to suit the needs of his customers.

However, there are certain special features, which differentiate internal trade from international trade. The difference are as follows:-

1. Demand and Supply: Demand and supply can`t work out their full effects where foreign trade is concerned. Whereas such factors can work out their full efforts in the case of internal trade.

2. Physical Obstacle to Commerce: Where international trade is carried on, a far greater degree of inequality between conditions of production in different countries is necessary to stimulate trade when the countries are widely separated than when they are adjoining.

3. Artificial Barriers to Trade: The natural difficulties may be increased by artificial barriers to trade, either through prohibitive laws as in war time of through customs duties or protective tariffs.

4. Obstacles of Mobility of Capital: Men who refuse to leave their own land may invest capital abroad. A foreign loan must offer a much higher rate of interest than a home loan. Not only is there a real risk of loss of interest and even capital, but an investor feels a sense of insecurity when money is invested abroad.

5. Differences in Economic Environment from country to country: Different countries may have different facilities for carrying out productive activities. Differences in system of national and local taxation, regulations for health, factory organization, education and insurance, policy regarding the transport and public utilities, laws relating to industrial combinations and trade, etc., do exist between countries. These differences bring about a

pg. 13

6. The geographical and climatic conditions: they may give rise to territorial division of labour and localization of industries. Some countries may have natural resources is abundance such as iron ore, coal, etc., whereas in some other countries climatic conditions give advantages to them.

7. Long-distance: International trade is generally of long-distance. This may affect the transport costs and the cost of different factors of production.

8. Preference: Preference for home and the prejudice against foreigners remain as one of the major factors that would explain as to why the rates of earning of the different of equal efficiency would not be equalized between different countries.

Benefits of International Trade


The various gains of international trade are as follows:

1. International Specialization: International trade enables to specialize in the production of those goods in which each country has special advantages. Some countries are rich in minerals and in hydroelectric power. Some are blessed with extensive land but have very little population. In the absence of trade, every country will be forced to produce all types of goods, even those for which they do not have facilities for production. International trade, on the other hand, will enable each country to specialize in the commodities in which it has absolute or comparative advantages. Thus, international trade brings about specialization and also all other advantages associated with such specialization.

2. Increased Production and Higher Standard of Living: It is well known that specialization leads to the following: Best utilization of resources. Concentration on the production of goods in which they have advantages.

pg. 14

Saving of time and energy in production and perfecting the skills in production. Inventing and using new techniques of production.

All these indicate one basis advantage viz., increased production. Increased production will also mean higher standard of living for people in both the countries.

3. Availability of Scarce Materials: International trade is the only method by which a country can supplement its storage of resources or certain essential materials. There is no country in the world which has all the resources it requires. At the same time, there are some countries which have been blessed by nature with some rare materials. International trade ensures equal access to raw materials for all countries.

4. Equalization of Prices between Countries: An important gain of international trade or the effect of it is the tendency of internationally traded goods to have the same price everywhere. Through international trade, supply is increased in the importing country and thereby the prices are reduced.

pg. 15

TRENDS IN INDIA'S FOREIGN TRADE POLICY

pg. 16

Indias Trade Performance


Indias merchandise exports reached a level of US $ 251.14 billion during 2010-11 registering a growth of 40.49 percent as compared to a negative growth of 3.53 percent during the previous year. Indias export sector has exhibited remarkable resilience and dynamis m in the recent years. Despite the recent setback faced by Indias export sector due to global slowdown, merchandise exports recorded a Compound Annual Growth Rate (CAGR) of 20.0 per cent from 2004-05 to 2010-11. Indias merchandise exports reached a level of US $ 304.62 billion during 2011-12 registering a growth of 21.30 percent as compared to a growth of 40.49 percent during the previous year. Despite the recent setback faced by Indias export sector due to global slowdown, merchandise exports still recorded a Compound Annual Growth Rate (CAGR) of 20.3 per cent from 2004-05 to 2011-12.

World Trade Scenario


As per IMFs World Economic Outlook January, 2013, the volume of world trade (goods and services) in 2012 slowed down to 2.8 per cent compared to the 5.9 per cent achieved in 2011. As per IMF projections, growth in the volume of world trade is expected to rise to 3.8 per cent in 2013.The IMF has put its growth projections of world output at 3.5 per cent in 2013. The advanced economies are expected to grow at 1.4 per cent while the emerging and developing economies to grow at 5.5 per cent in 2013. The projected growth rates in different countries are expected to determine the markets for our exports. As per WTOs International Trade Statistics, 2012, in m erchandise trade, India is the 19th largest exporter in the world with a share of 1.7 per cent and the 12th largest importer with a share of 2.5 per cent in 2011.

pg. 17

Exports
Indias merchandise exports reached a level of US$ 178.7 billion during 2009-10 registering a negative growth of 3.5 percent as compared to a growth of 13.6 percent during the previous year. Notwithstanding the deceleration of the growth in 2009-2010, Indias export sector has exhibited remarkable resilience and dynamism in recent years. Our merchandise exports recorded a compound annual growth rate (CAGR) of 22.0 per cent during the five year period from 2004-05 to 2008-09 as compared to the preceding five years when exports increased by a lower CAGR of 14.0 per cent. According to latest WTO data (2009), Indias share in the world merchandise

exports increased from 0.8 per cent in 2004 to 1.3 per cent in 2008. India also improved its ranking among the leading exporters in world merchandise trade from 30th in 2004 to 21st in 2009. Indias exports have not been affected to the same extent as that of other economies of the world during the phase of global slowdown. After declining consistently for the first seven months of the year 2009-10, Indias exports reversed the trend in October, 2009 by registering a positive growth of 3.4%. The upward trend has been maintained since then wherein exports grew at the rate of 30.0 % in November 2009; 20.3% in December, 2009, 18.7% in January, 2010, 34.8% in February, 2010; 54.1 % in March 2010, 38.5 % in April 2010, 30.1 % in May 2010, 43.8% in June 2010, 11.7 % in July 2010, 22.5% The Government had set an export target of US$ 175 billion for 2009-10. With merchandise exports reaching US$ 178.7 billion in 2009-10, the actual exports exceeded the target by 2.1 per cent which is a remarkable achievement during a period of recession in Indias major export destinations. During 2010-11 (Apr-Dec) exports reached a level of US$ 164.7 billion registering a growth of 29.5 per cent with almost all the major commodity groups making positive growth. Only seven (7) commodities showed negative growth viz. Tea (1.95), Cashew (7.73), Fruits & Vegetables (28.03), Iron Ore (93.14), Computer Software (92.73), Petroleum Products (13.50) and Handicrafts (excl. Handmade carpets) (56.90).

pg. 18

Exports recorded a growth of 21.30 per cent during Apr-Mar 2011-12. The Government has set an export target of US $ 360 billion for 2012-13. The merchandise exports have reached US $ 265.95 billion in 2012-13 (Apr.-Feb.). Export target and achievement from 2004-05 to 2011-12 and 2012-13 (Apr.-Feb.) is given in the below:

Imports
Cumulative value of imports during 2012-13 (Apr.-Feb.) was US $ 448.04 billion as against US $ 446.94 billion during the corresponding period of the previous year registering a growth of 0.25 per cent in $ terms. Oil imports were valued at US $ 155.57 billion during 2012-13 (Apr.Feb.) which was 11.92 per cent higher than oil imports valued US $ 139.00 billion in the corresponding period of previous year. Non-oil imports were valued at US $ 292.47 billion during 2012-13 (Apr.-Feb.) which was 5.03 per cent lower than non-oil imports of US $ 307.94 billion in previous year.

pg. 19

Trade Balance
The Trade deficit in 2012-13 (Apr.-Feb.) was estimated at US $ billion 182.09 which was higher than the deficit of US $ 169.81 billion during 2011-12 (Apr.-Feb.). Performance of Exports, Imports and Balance of Trade during 2004-05 to 2012-13 (April-Feb.) is given in the table below

S. No 1 2 3 4 5 6 7 8 9 10

Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012(Provisional) 2011-12 (April-February) Press Release 2012-13 (April-February) Press Release

Exports 3,75,340 4,56,418 5,71,779 6,55,864 8,40,755 8,45,534 11,42,922 14,59,281 13,20,836 14,46,627

%Growth 27.94 21.60 25.28 14.71 28.19 0.57 35.17 27.68

Imports 5,01,065 6,60,409 8,40,506 10,12,312 13,74,436 13,63,736 16,83,467 23,44,772 21,32,198 24,36,564

(Values in Rs crores) %Growth Trade Balance 39.53 -1,25,725 31.80 -2,03,991 27.27 -2,68,727 20.44 -3,56,448 35.77 -5,33,680 -0.78 -5,18,202 23.45 -5,40,545 39.28 -8,85,492 -8,11,362 14.27 -9,89,938

9.52

S. No. 1 2 3 4 5 6 7 8 9 10

Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012(Provisional) 2011-12 (April-February) Press Release 2012-13 (April-February) Press Release

Exports 83,536 1,03,091 1,26,414 1,63,132 1,85,295 1,78,751 2,51,136 3,04,624 2,77,125 2,65,946

%Growth 30.85 23.41 22.62 29.05 13.59 -3.53 40.49 21.30

(Values in US$ Millions) Imports %Growth Trade Balance 1,11,517 42.70 -27,981 1,49,166 33.76 -46,075 1,85,735 24.52 -59,321 2,51,654 35.49 -88,522 3,03,696 20.68 -1,18,401 2,88,373 -5.05 -1,09,621 3,69,769 28.23 -1,18,633 4,89,181 32.29 -1,84,558 4,46,939 -1,69,814 4,48,037 0.25 -1,82,090

-4.03

pg. 20

Foreign Trade Policy, 2009-14


The Foreign Trade Policy (FTP) 2009-14 was announced on 27th August, 2009 in the backdrop of a fall in Indias exports due to global slowdown. The short term objective of FTP (2009-14) was to arrest and reverse the declining trend of exports as well as to provide additional support especially to those sectors which were hit badly by recession in the developed world. The Policy envisaged an annual export growth of 15 per cent with an annual export target of US$ 200 billion by March 2011 and to come back on the high export growth path of around 25 per cent per annum in the remaining three years of this Foreign Trade Policy i.e. up to 2014. The long term policy objective for the Government is to double Indias share in global trade by 2020. Subsequently, an Annual Supplement 2010-11 to the FTP (2009-14) was announced on 23rd August, 2010. In this Supplement further measures to enhance exports have been elaborated. Further measures were announced on 11th February 2011. (Details are available in Chapter 3).

Exports of Principal Commodities


Disaggregated data on exports of Principal Commodities, both in Rupee and Dollar terms, available for the period 2012-13 (April- January) as compared with the corresponding period of the previous year are given in Appendix at Table 3.1 and Table 3.2 respectively. Exports of the top five commodities during the period 2012-13 (April-January) registered a share of 50.8 per cent in US $ terms mainly due to significant contribution in the exports of Petroleum (Crude & Products), Gems & Jewellery, Transport Equipments, Machinery and Instruments and Drugs, Pharmaceuticals & Fine Chemicals. The share of top five Principal Commodity Groups in Indias total exports during 2012-13 (April-January) is given at Chart shown below.

pg. 21

The export performance (in terms of growth in US $ terms) of top five commodities during 2012-13 (April-January) vis-a-vis the corresponding period of the previous year is shown in Chart shown below.

pg. 22

Plantation Crops
Export of Plantation crops during 2012-13 (AprilJanuary), decreased by 9.95 per cent in US $ terms compared with the corresponding period of the previous year. Export of Coffee registered a negative growth of 11.44 per cent, the value decreasing from US $ 741.05 million to US $ 656.26 million. Export of Tea also decreased by 8.50 per cent.

Agriculture and Allied Products


Agriculture and Allied Products as a group include Cereals, Pulses, Tobacco, Spices, Nuts and Seeds, Oil Meals, Guargum Meals, Castor Oil, Shellac, Sugar & Molasses, Processed Food, Meat & Meat Products, etc. During 2012-13 (AprilJanuary), exports of commodities under this group registered a growth of 27.57 per cent with the value of exports increasing from US $ 21353.59 million in the previous year to US $ 27240.35 million during the current year.

Ores and Minerals


Exports of Ores and Minerals were estimated at US $ 4389.03 million during 2012-13 (AprilJanuary) registering a negative growth of 35.48 per cent over the same period of the previous year. Sub groups viz. Iron Ore, Mica, Other ores & minerals and Coal have recorded a negative growth of 64.99 per cent, 0.80 per cent, 9.46 per cent and 5.24 percent respectively. Processed minerals registered a growth of 12.14 per cent.

Leather and Leather Manufactures


Export of Leather and Leather Manufactures recorded a negative growth of 2.22 per cent during 2012-13 (April-January). The value of exports decreased to US $ 3973.92 million from US $ 4064.33 million during the same period of the previous year. Exports of Leather and

pg. 23

Manufactures have registered a growth of 3.98 per cent and Leather Footwear registered a negative growth of 10.01 per cent.

Gems and Jewelers


The export of Gems and Jewellery during 2012-13(April-January) decreased to US $ 34758.78 million from US $ 38755.30 million during the corresponding period of last year showing a negative growth of 10.31 per cent.

Chemicals and Related Products


During the period 2012-13 (April-January), the value of exports of Chemicals and Related Products increased to US $ 34686.90 million from US $ 32319.14 million during the same period of the previous year registering a growth of 7.33 per cent. Basic Chemicals and Pharmaceuticals & Cosmetics and Rubber, Glass & Other Products have registered a positive growth and Residual Chemicals and allied products and Plastic & linoleum registered a negative growth.

Engineering Goods
Items under this group consist of Machinery, Iron & Steel and Other Engineering items. Export from this sector during the period 2012-13(April-January) stood at US $ 45543.37 million compared with US $ 47966.60 million during the same period of the previous year, registering a negative growth of 5.05 per cent. The growth in export of Other Engineering items stood at 5.78 per cent, Machinery & Instruments stood at 3.53 per cent and Machine Tools stood at 4.59 per cent.

pg. 24

Electronic Goods
During the period 2012-13 (April-January), exports of Electronic Goods as a group was estimated at US $ 7102.84 million compared with US $ 7441.50 million during the corresponding period of last year, registering a negative growth of 4.55 per cent.

Textiles
During the period 2012-13 (April-January), the value of Textiles exports was estimated at US $ 21200.12 million compared with US $ 22447.75 million in the corresponding period of the previous year, recording a negative growth of 5.56 per cent. The export of Readymade Garments, Manmade Textiles & Made Ups, Natural Silk Textiles, Wool and Woolen manufactures, Coir and coir manufactures and Jute manufactures registered negative growth of 7.80 per cent, 12.61 per cent, 23.34 per cent, 19.98 per cent, 7.18 per cent and 16.37 per cent respectively. However, Cotton yarn/Fabrics/Made-ups etc. registered a positive growth of 6.38 per cent.

Handicrafts and Carpets


Exports of Handicrafts declined to US $ 180.51 million during 2012-13 (April- January), from US $ 214.84 million during the corresponding period of the previous year registering a negative growth of 15.98 per cent. Export of carpets increased to US $ 812.17 million from US $ 699.26 million during the same period last year registering a growth of 16.15 per cent.

Project Goods
During 2012-13 (April-January), the export of Project Goods were estimated at US $ 87.70 million compared with US $ 44.10 million during the corresponding period of last year registering a substantial growth of 98.88 per cent.

pg. 25

Petroleum Products
Export of Petroleum Products increased to US $ 48613.38 million during 2012-13 (AprilJanuary), as compared with US $ 46489.12 million during the same period of last year recording a growth of 4.57 per cent.

Cotton Raw including Waste


There was a negative growth in the exports of Cotton Raw including waste by 21.13 per cent from US $ 3326.67 million in 2011-12 (April-January) to US $ 2623.68 million during 2012-13 (April-January).

Imports of Principal Commodities


Disaggregated data on imports of principal commodities, both in Rupee and Dollar terms, available for the period 2012-13 (April January), as compared to the corresponding period of the previous year are given in Appendix at Table 3.5 and Table 3.6 respectively. Imports of the top five commodities during the period 2012-13 (April-January) registered a share of 61.8 per cent mainly due to significant imports of Petroleum (Crude & Products), Gold, Electronic Goods, Machinery except electrical and electronic and Pearls, precious and semi-precious stones. The share of top five Principal Commodity in Indias total imports during 2012 -13 (April January) is given at Chart below.

pg. 26

The import performance by growth of top five Principal commodities during 2012-13 (April January) vis-a-vis the corresponding period of the previous year is shown at Chart below.

Fertilizers
During 2012-13 (April January), import of Fertilizers (manufactured) decreased to US $ 6991.61 million from US $ 8718.13 million in April-January 2011-12 recording a negative growth of 19.80 per cent.

pg. 27

Petroleum Crude & Products


The import of Petroleum Crude & Products stood at US $ 140729.62 million during 2012-13 April - January as against US $ 125871.43 million during the same period of the previous year registering a growth of 11.80 per cent.

Pearls, Precious and Semi-Precious Stones


Import of Pearls, Precious and Semi-Precious Stones during 2012-13 (April January) decreased to US $ 17696.44 million from US $ 26339.27 million during the corresponding period of the previous year registering a substantial decline of 32.81 per cent.

Capital Goods
Import of Capital Goods, largely comprises of Machinery, including Transport Equipment and Electrical Machinery. Import of Machine Tools, Non-Electrical Machinery, and Electrical Machinery registered a negative growth of 4.67 per cent, 6.94 per cent, 6.45 per cent respectively and Transport Equipment registered a positive growth of 0.04 per cent.

Organic and Inorganic Chemicals


During 2012-13 (AprilJanuary), import of Organic and Inorganic Chemicals increased to US $ 16116.77 million from US $ 15837.29 million during the same period of last year, registering a growth of 1.76 per cent. Import of Medicinal and Pharmaceutical Products increased to US $ 2550.01 million from US $ 2446.88 million during the corresponding period of last year registering a growth of 4.21 per cent

pg. 28

Coal, Coke & Briquettes


During 2012-13 (AprilJanuary), import of Coal, Coke & Briquettes decreased to US $ 13301.43 million from US $ 14851.58 million during the same period of last year, registering a negative growth of 10.44 per cent.

Gold & Silver


During 2012-13 (AprilJanuary) import of Gold and Silver decreased to US $ 46769.39 million from US $ 51751.03 million during the corresponding period of the previous year registering a negative growth of 9.63 per cent.

Direction of Indias Foreign Trade


The value of Indias exports and imports from major regions/ countries both in Rupee and Dollar terms are given in Appendix at Table 3.3, 3.4, 3.7 and 3.8 respectively. Share of major destinations of Indias Exports and sources of Imports during 2012-13 (April January) are given in Chart respectively.

pg. 29

During the period 2012-13 (AprilJanuary), the share of Asia comprising of East Asia, ASEAN, West Asia, Other West Asia, North East Asia and South Asia accounted for 50.78 per cent of Indias total exports in US $ terms. The share of Europe and America in Indias exports stood at 18.88 per cent and 18.77 per cent respectively of which EU countries (27) comprises 16.99 per cent. During the period, USA (12.89 per cent) has been the most important country of export destination followed by UAE (12.20 per cent), Singapore (4.79 percent), China (4.59 per cent) and Hong Kong (3.95 per cent). Asia accounted for 60.08 per cent of Indias total imports during the period followed by Europ e (17.39 per cent) and America (11.64 per cent). Among individual countries the share of China stood highest at (11.21 per cent) followed by UAE (7.67 per cent), Saudi Arabia (6.78 per cent), Switzerland (6.01 per cent) and USA (5.00 per cent).

pg. 30

Findings & Conclusions


During the first phase of international trade policy of India the volume of Exports and Imports were less, due to the restrictive trade policy was followed by Indian Govt.(i.e. 1950-51 to 196970) * In the pre-reform period Indias trade has increased , due to the liberalisation policy

adopted by the govt. Of India.* In the post-reform period Indias trade has increased significantly because of LPG. *Indias trade balance is always negative because of volume of imports are greater than exports,so the govt. Of India should frame such policy which boost the volume * of exports, ultimately it helps to transform negative trade balance into positive trade balance * The volume of imports were always remained high, so it is necessary to curtail the imports of un necessary goods and luxurious goods , which in turn help to maintain positive trade balance. * The govt of India must frame such policies which induces the promotions of exports from all the sectors of the economy

pg. 31

EXPORTS
Export of Principal Commodities Groups for YR 2004-2005 Commodity PLANTATION AGRI & ALLIED PRDTS MARINE PRODUCTS ORES & MINERALS LEATHER & MNFRS GEMS & JEWELLERY SPORTS GOODS CHEMICALS & RELATED PRODUCTS ENGINEERING GOODS ELECTRONIC GOODS PROJECT GOODS TEXTILES HANDICRAFTS CARPETS COTTON RAW INCL WASTE PETROLEUM PRODUCTS UNCLASSIFIED EXPORTS Total Apr-Mar 2004 2,723.26 24,844.48 6,105.63 10,884.62 9,939.43 48,586.07 455.48 45,768.06 48,324.44 8,293.86 386.58 56,082.22 2,296.13 2,691.23 942.37 16,397.44 8,645.46 293,366.75 Apr-Mar 2005 2,909.38 28,276.93 6,469.22 22,818.77 10,880.57 61,833.71 459.60 59,148.06 69,118.23 8,493.43 337.03 58,044.73 1,695.79 2,859.58 422.58 31,404.15 10,167.77 375,339.50 %Growth 6.83 13.82 5.95 109.64 9.47 27.27 0.90 29.23 43.03 2.41 -12.82 3.50 -26.15 6.26 -55.16 91.52 17.61 27.94 %Share 0.78 7.53 1.72 6.08 2.90 16.47 0.12 15.76 18.41 2.26 0.09 15.46 0.45 0.76 0.11 8.37 2.71 100.00

A ) B ) C ) D ) E ) F) G ) H ) I) J) K ) L) M ) N ) O ) P ) Q )

Top 10 Countries of Export for YR 2004-2005


Values in Rs. Crores RANK 1 2 3 4 5 6 7 8 9 10 COUNTRIES USA U ARAB EMTS CHINA P RP SINGAPORE HONG KONG UK GERMANY BELGIUM ITALY JAPAN Total Apr-Mar 2004 52,798.54 23,552.85 13,579.06 9,763.93 14,988.52 13,892.31 11,692.62 8,297.56 7,946.88 7,854.45 293,366.75 Apr-Mar 2005 61,851.55 33,015.13 25,232.97 17,975.35 16,587.91 16,539.71 12,698.75 11,276.48 10,271.29 9,561.02 375,339.50 %Growth 17.15 40.17 85.82 84.10 10.67 19.06 8.60 35.90 29.25 21.73 27.94 %Share 16.48 8.80 6.72 4.79 4.42 4.41 3.38 3.00 2.74 2.55 100.00

pg. 32

Export of Principal Commodities Groups for YR 2005-2006


Values in Rs. Crores Commodi ty PLANTATION AGRI & ALLIED PRDTS MARINE PRODUCTS ORES & MINERALS LEATHER & MNFRS GEMS & JEWELLERY SPORTS GOODS CHEMICALS & RELATED PRODUCTS ENGINEERING GOODS ELECTRONIC GOODS PROJECT GOODS TEXTILES HANDICRAFTS CARPETS COTTON RAW INCL WASTE PETROLEUM PRODUCTS UNCLASSIFIED EXPORTS Total Apr-Mar 2005 2,909.38 28,276.93 6,469.22 22,818.77 10,880.57 61,833.71 459.60 59,148.06 69,118.23 8,493.43 337.03 58,044.73 1,695.79 2,859.58 422.58 31,404.15 10,167.77 375,339.50 Apr-Mar 2006 3,319.41 31,960.37 7,035.91 27,288.34 11,943.45 68,752.59 595.87 69,148.93 85,462.14 10,039.90 654.81 68,823.32 2,045.34 3,774.55 2,904.35 51,532.80 11,135.77 456,417.88 %Growth 14.09 13.03 8.76 19.59 9.77 11.19 29.65 16.91 23.65 18.21 94.29 18.57 20.61 32.00 587.29 64.10 9.52 21.60 %Share 0.73 7.00 1.54 5.98 2.62 15.06 0.13 15.15 18.72 2.20 0.14 15.08 0.45 0.83 0.64 11.29 2.44 100.00

A) B) C ) D ) E) F) G ) H ) I) J) K) L) M )N ) O ) P ) Q )

Top 10 Countries of Export for YR 2005-2006


Values in Rs. Crores RANK 1 2 3 4 5 6 7 8 9 10 Country USA U ARAB EMTS CHINA P RP SINGAPORE UK HONG KONG GERMANY BELGIUM ITALY JAPAN Total Apr-Mar 2005 61,851.55 33,015.13 25,232.97 17,975.35 16,539.71 16,587.91 12,698.75 11,276.48 10,271.29 9,561.02 375,339.50 Apr-Mar 2006 76,828.09 38,038.85 29,924.91 24,019.65 22,399.21 19,796.10 15,877.02 12,711.96 11,152.67 10,985.39 456,417.88 %Growth 24.21 15.22 18.59 33.63 35.43 19.34 25.03 12.73 8.58 14.90 21.60 %Share 16.83 8.33 6.56 5.26 4.91 4.34 3.48 2.79 2.44 2.41 100.00

pg. 33

Export of Principal Commodities Groups for YR 2006-2007 Values in Rs. Crores Commodi PLANTATION ty AGRI & ALLIED PRDTS MARINE PRODUCTS ORES & MINERALS LEATHER & MNFRS GEMS & JEWELLERY SPORTS GOODS CHEMICALS & RELATED PRODUCTS ENGINEERING GOODS ELECTRONIC GOODS PROJECT GOODS TEXTILES HANDICRAFTS CARPETS COTTON RAW INCL WASTE PETROLEUM PRODUCTS UNCLASSIFIED EXPORTS Total Apr-Mar 2006 3,319.41 31,960.37 7,035.91 27,288.34 11,943.45 68,752.59 595.87 69,148.93 85,462.14 10,039.90 654.81 68,823.32 2,045.34 3,774.55 2,904.35 51,532.80 11,135.77 456,417.88 Apr-Mar 2007 3,938.51 39,344.68 8,001.04 31,685.96 13,650.38 72,295.17 573.54 83,357.37 119,874.96 13,292.73 622.43 74,391.06 1,981.91 4,199.09 6,107.81 84,520.15 13,942.50 571,779.25 %Growth 18.65 23.10 13.72 16.12 14.29 5.15 -3.75 20.55 40.27 32.40 -4.94 8.09 -3.10 11.25 110.30 64.01 25.20 25.28 %Share 0.69 6.88 1.40 5.54 2.39 12.64 0.10 14.58 20.97 2.32 0.11 13.01 0.35 0.73 1.07 14.78 2.44 100.00

A) B) C ) D ) E) F) G ) H ) I) J) K) L ) M ) N ) O ) P ) Q )

Top 10 Countries of Export for YR 2006-2007 Values in Rs. Crores Rank 1 2 3 4 5 6 7 8 9 10 Country USA U ARAB EMTS CHINA P RP SINGAPORE UK HONG KONG GERMANY ITALY BELGIUM JAPAN Total Apr-Mar 2006 76,828. 09 38,038. 85 29,924. 91 24,019. 65 22,399. 21 19,796. 10 15,877. 02 11,152. 67 12,711. 96 10,985. 39 456,417. 88 Apr-Mar 2007 85,368. 48 54,444. 98 37,529. 78 27,461. 61 25,421. 29 21,179. 38 18,007. 23 16,212. 43 15,721. 71 12,953. 61 571,779. 25 %Growth 11.12 43.13 25.41 14.33 13.49 6.99 13.42 45.37 23.68 17.92 25.28 %Share 14.93 9.52 6.56 4.80 4.45 3.70 3.15 2.84 2.75 2.27 100.00

pg. 34

Export of Principal Commodities Groups for YR 2007-2008 Values in Rs. Crores Commodity A ) B ) C ) D ) E ) F ) G ) H ) I) J) K ) L) M ) N ) O ) P ) Q ) PLANTATION AGRI & ALLIED PRDTS MARINE PRODUCTS ORES & MINERALS LEATHER & MNFRS GEMS & JEWELLERY SPORTS GOODS CHEMICALS & RELATED PRODUCTS ENGINEERING GOODS ELECTRONIC GOODS PROJECT GOODS TEXTILES HANDICRAFTS CARPETS COTTON RAW INCL WASTE PETROLEUM PRODUCTS UNCLASSIFIED EXPORTS Total Apr-Mar 2007 3,938.51 39,344.68 8,001.04 31,685.96 13,650.38 72,295.17 573.54 83,357.37 119,874.96 13,292.73 622.43 74,391.06 1,981.91 4,199.09 6,107.81 84,520.15 13,942.50 571,779.25 Apr-Mar 2008 3,906.44 54,510.53 6,926.67 36,716.93 14,101.30 79,227.74 539.94 90,040.06 135,719.27 14,131.50 584.06 74,399.19 2,046.21 3,797.91 8,865.39 114,191.68 16,158.71 655,863.50 %Growth -0.81 38.55 -13.43 15.88 3.30 9.59 -5.86 8.02 13.22 6.31 -6.16 0.01 3.24 -9.55 45.15 35.11 15.90 14.71 %Share 0.60 8.31 1.06 5.60 2.15 12.08 0.08 13.73 20.69 2.15 0.09 11.34 0.31 0.58 1.35 17.41 2 100

Top 10 Countries of Export for YR 2007-2008 Values in Rs. Crores Rank 1 2 3 4 5 6 7 8 9 10 Country USA U ARAB EMTS CHINA P RP SINGAPORE UK HONG KONG NETHERLAND GERMANY BELGIUM ITALY Total Apr-Mar 2007 85,368.48 54,444.98 37,529.78 27,461.61 25,421.29 21,179.38 12,082.48 18,007.23 15,721.71 16,212.43 571,779.25 Apr-Mar 2008 83,388.07 62,915.03 43,597.41 29,662.23 26,967.48 25,385.25 21,038.46 20,598.93 16,943.10 15,748.13 655,863.50 %Growth -2.32 15.56 16.17 8.01 6.08 19.86 74.12 14.39 7.77 -2.86 14.71 %Share 12.71 9.59 6.65 4.52 4.11 3.87 3.21 3.14 2.58 2.40 100.00

Export of Principal Commodities Groups for YR 2008-2009 Values in Rs. Crores

pg. 35

Commodity A) B) C) D) E) F) G) H) I) J) K) L) M) N) O) P) Q) PLANTATION AGRI & ALLIED PRDTS MARINE PRODUCTS ORES & MINERALS LEATHER & MNFRS GEMS & JEWELLERY SPORTS GOODS ENGINEERING GOODS ELECTRONIC GOODS PROJECT GOODS TEXTILES HANDICRAFTS CARPETS COTTON RAW INCL WASTE PETROLEUM PRODUCTS UNCLASSIFIED EXPORTS Total

Apr-Mar 2008 3,906.44 54,510.53 6,926.67 36,716.93 14,101.30 79,227.74 539.94 135,719.27 14,131.50 584.06 74,399.19 2,046.21 3,797.91 8,865.39 114,191.68 16,158.71 655,863.50

Apr-Mar 2009(P) %Growth %Share 4,943.39 65,769.38 7,064.11 35,874.05 16,351.11 127,424.33 660.12 109,592.65 183,975.64 32,781.90 626.05 88,498.38 1,375.48 3,564.09 2,865.85 123,397.98 35,213.45 839,977.94 26.54 20.65 1.98 -2.30 15.95 60.83 22.26 21.72 35.56 131.98 7.19 18.95 -32.78 -6.16 -67.67 8.06 117.92 28.07 0.59 7.83 0.84 4.27 1.95 15.17 0.08 13.05 21.90 3.90 0.07 10.54 0.16 0.42 0.34 14.69 4.19 100.00

CHEMICALS & RELATED PRODUCTS 90,040.06

Top 10 Countries of Export for YR 2008-2009 Values in Rs. Crores Rank 1 2 3 4 5 6 7 8 9 10 Country U ARAB EMTS USA CHINA P RP SINGAPORE HONG KONG UK GERMANY NETHERLAND SAUDI ARAB UNSPECIFIED Total Apr-Mar 2008 62,915.03 83,388.07 43,597.41 29,662.23 25,385.25 26,967.48 20,598.93 21,038.46 14,922.55 1,467.74 655,863.50 Apr-Mar 09(P) 110,021.10 95,750.58 42,661.32 37,746.56 30,639.15 30,330.95 29,177.71 28,883.16 22,941.17 20,321.50 839,977.94 %Growth 74.87 14.83 -2.15 27.25 20.70 2.47 41.65 37.29 53.73 1,284.54 28.07 %Share 13.10 11.40 5.08 4.49 3.65 3.61 3.47 3.44 2.73 2.42 100.00

Trends in exports
S.No Commodity
Apr-Mar 2004 Apr-Mar 2009(P)

% Growth

% Share

pg. 36

A) B) C) D) E) F) G) H) I) J) K) L) M) N) O) P) Q)

PLANTATION AGRI & ALLIED PRDTS MARINE PRODUCTS ORES & MINERALS LEATHER & MNFRS GEMS & JEWELLERY SPORTS GOODS CHEMICALS & RELATED PRODUCTS ENGINEERING GOODS ELECTRONIC GOODS PROJECT GOODS TEXTILES HANDICRAFTS CARPETS COTTON RAW INCL WASTE PETROLEUM PRODUCTS UNCLASSIFIED EXPORTS Total

2,723.26 24,844.48 6,105.63 10,884.62 9,939.43 48,586.07 455.48 45,768.06 48,324.44 8,293.86 386.58 56,082.22 2,296.13 2,691.23 942.37 16,397.44 8,645.46 293,366.75

4,943. 39 65,769. 38 7,064. 11 35,874. 05 16,351. 11 127,424. 33 660. 12 109,592. 65 183,975. 64 32,781. 90 626. 05 88,498. 38 1,375. 48 3,564. 09 2,865. 85 123,397. 98 35,213. 45 839,977. 94

81.52 164.72 15.69 229.58 64.50 162.26 44.92 139.45 280.70 295.25 61.94 57.80 -40.09 32.43 204.11 652.54 307.30 186.32

0.58 7.82 0.84 4.27 1.94 15.16 0.07 13.04 21.90 3.90 0.07 10.53 0.16 0.42 0.34 14.6 4.19 100

Trends in export
We will consider only the top 5 commodity group as it constitutes 75.23% of total exports.

1. ENGINEERING GOODS:-

Export of items under this group comprising Manufactures of Metals, Machinery and Instruments, Primary and Semi-finished Iron & Steel and Transport Equipment. This sector saw a growth rate of 13.04% over past 6 years which is nominal seeing to the growth of Indian economy. 2. GEMS & JEWELLERY:This part saw a nominal growth of 15.16%.

pg. 37

3. PETROLEUM PRODUCTS: This section consists of re-export of processed goods of crude petroleum. This section constitutes a good portion of Indian exports to great surprise. It growed by 14.6%.

4. CHEMICALS & RELATED PRODUCTS:Three out of the four sub-groups under this head viz. Basic Chemicals, Pharmaceuticals & Cosmetics, Plastics & Linoleum, Rubber, and Glass. This section saw a nominal growth of 13.04%.

5. TEXTILES: This section mainly comprises of:1. Wool 2. silk 3. jute,etc This section saw a growth of 10.53%.

6. HANDICRAFT:Another interesting section to discuss here is the handicraft section which saw a decline which is opposite to all other sections. This section includes Metal Art ware, Textiles (hand printed), Wood wares and Zari goods. It saw a decline of 40.09% this may be due to the reason that it highly depends upon the taste and preference which may change with time and region so that might be the possible reason for such an abrupt behavior.

pg. 38

IMPORTS
Import of Principal Commodities Groups for YR 2004-2005 Values in Rs. Crores Commodity Apr-Mar 2004 134,451.00 32,757.32 42,752.62 1,819.62 147,327.10 359,107.66 Apr-Mar 2005 190,393.36 42,337.70 58,234.16 2,678.94 207,420.39 501,064.56 %Growth 41.61 29.25 36.21 47.23 40.79 39.53 %Share 38.00 8.45 11.62 0.53 41.40 100.00

A) B) C) D) E)

BULK IMPORTS PEARLS, PRECIOUS & SEMI-PRECIOUS STONES MACHINERY PROJECT GOODS OTHERS Total

Top 10 Countries of Import for YR 2004-2005 Values in Rs. Crores Rank Country 1 Apr-Mar 2 2004 3 Apr-Mar 2005 4 %Growt h 5 6 %Share 7 8 9 10 Country UNSPECIFIED CHINA P RP USA SWITZERLAND U ARAB EMTS BELGIUM GERMANY AUSTRALIA UK KOREA RP Total Apr-Mar 2004 95,366.52 18,625.14 23,135.83 15,222.52 9,465.27 18,269.86 13,411.24 12,173.59 14,862.26 13,000.48 359,107.66 Apr-Mar 2005 120,794.15 31,892.31 31,458.13 26,688.96 20,853.17 20,618.70 18,041.56 17,184.18 16,023.45 15,765.42 501,064.56 %Growth 26.66 71.23 35.97 75.33 120.31 12.86 34.53 41.16 7.81 21.27 39.53 %Share 24.1 16.3 6 6.2 8 5.3 3 4.1 6 4.1 1 3.6 0 3.4 3 3.2 0 3.1 5 100.0 0

pg. 39

Import of Principal Commodities Groups for YR 2005-2006 Values in Rs. Crores Commodity Apr-Mar 2005 190,393.36 42,337.70 58,234.16 2,678.94 207,420.39 501,064.56 Apr-Mar 2006 270,075.83 40,441.28 94,872.68 3,908.05 251,111.05 660,408.88 %Growth 41.85 -4.48 62.92 45.88 21.06 31.80 %Share 40.90 6.12 14.37 0.59 38.02 100.00

A) B) C) D) E)

BULK IMPORTS PEARLS, PRECIOUS & SEMI-PRECIOUS STONES MACHINERY PROJECT GOODS OTHERS Total

Top 10 Countries of Import for YR 2005-2006 Values in Rs. Crores Rank 1 2 3 4 5 6 7 8 9 10 Country UNSPECIFIED Trade to Unspecified Countries CHINA P RP USA SWITZERLAND GERMANY AUSTRALIA BELGIUM KOREA RP U ARAB EMTS Total Apr-Mar 2005 120,794.15 15,626.00 31,892.31 31,458.13 26,688.96 18,041.56 17,184.18 20,618.70 15,765.42 20,853.17 501,064.56 Apr-Mar 2006 109,830 .28 86,218.00 48,116 .65 41,859 .46 29,024 .82 26,668 .73 21,906 .15 20,919 .83 20,205 .77 19,277 .04 660,408 .88 %Growth -9.08 451.76 50.87 33.06 8.75 47.82 27.48 1.46 28.17 -7.56 31.80 %Shar e 16. 13.06 63 7. 29 6. 34 4. 39 4. 04 3. 32 3. 17 3. 06 2. 92 100. 00

pg. 40

Import of Principal Commodities Groups for YR 2006-2007 Values in Rs. Crores Commodity A) B) C) D) E) BULK IMPORTS PEARLS, PRECIOUS & SEMIPRECIOUS STONES MACHINERY PROJECT GOODS OTHERS Total Apr-Mar 2006 270,075.83 40,441.28 94,872.68 3,908.05 251,111.05 660,408.88 Apr-Mar 2007 380,740.54 33,880.67 120,952.44 8,126.46 296,806.21 840,506.31 %Growth %Share 40.98 -16.22 27.49 107.94 18.20 27.27 45.30 4.03 14.39 0.97 35.31 100.00

Top 10 Countries of Import for YR 2006-2007 Values in Rs. Crores Rank 1 2 3 4 5 6 7 8 9 10 Country CHINA P RP SAUDI ARAB USA SWITZERLAND U ARAB EMTS IRAN GERMANY NIGERIA AUSTRALIA KUWAIT Total Apr-Mar 2006 48,116.65 7,226.93 41,859.46 29,024.82 19,277.04 3,110.05 26,668.73 320.82 21,906.15 2,044.79 660,408.88 Apr-Mar 2007 79,008.61 60,561.50 53,105.41 41,283.17 39,174.95 34,515.48 34,146.75 31,796.52 31,710.90 27,114.18 840,506.31 %Growth 64.20 738.00 26.87 42.23 103.22 1,009.80 28.04 9,811.04 44.76 1,226.01 27.27 %Share 9.40 7.21 6.32 4.91 4.66 4.11 4.06 3.78 3.77 3.23 100.00

pg. 41

Import of Principal Commodities Groups for YR 2007-2008 Values in Rs. Crores Commodity A) B) C) D) E) BULK IMPORTS PEARLS, PRECIOUS & SEMI-PRECIOUS STONES MACHINERY PROJECT GOODS OTHERS Total Apr-Mar 2007 380,740.54 33,880.67 120,952.44 8,126.46 296,806.21 840,506.31 Apr-Mar 2008 451,341.89 32,094.27 181,376.64 5,207.90 342,291.00 1,012,311.75 %Growth 18.54 -5.27 49.96 -35.91 15.32 20.44 %Share 44.59 3.17 17.92 0.51 33.81 100.00

Top 10 Countries of Import for YR 2007-2008 Values in Rs. Crores Rank 1 2 3 4 5 6 7 8 9 10 Country CHINA P RP USA SAUDI ARAB U ARAB EMTS IRAN GERMANY SWITZERLAND SINGAPORE AUSTRALIA KUWAIT Total Apr-Mar 2007 79,008.61 53,105.41 60,561.50 39,174.95 34,515.48 34,146.75 41,283.17 24,839.97 31,710.90 27,114.18 840,506.31 Apr-Mar 2008 109,116.1 1 84,625.1 3 78,110.3 1 54,233.2 0 43,945.9 3 39,736.0 4 39,570.8 2 32,682.1 8 31,552.0 8 30,959.9 3 1,012,311.7 5 %Growth 38.11 59.35 28.98 38.44 27.32 16.37 -4.15 31.57 -0.50 14.18 20.44 %Share 10.78 8.3 6 7.7 2 5.3 6 4.3 4 3.9 3 3.9 1 3.2 3 3.1 2 3.0 6 100.00

pg. 42

Import of Principal Commodities Groups for YR 2008-2009(P) Values in Rs. Crores Commodity A) B) C) D) E) BULK IMPORTS PEARLS, PRECIOUS & SEMI-PRECIOUS STONES MACHINERY PROJECT GOODS OTHERS Total Apr-Mar 2008 451,341.89 32,094.27 181,376.64 5,207.90 342,291.00 1,012,311.75 Apr-Mar 2009(P) 620,105.80 66,410.18 183,033.69 14,383.74 456,654.36 1,340,587.75 %Growth 37.39 106.92 0.91 176.19 33.41 32.43 %Share 46.26 4.95 13.65 1.07 34.06 100.00

Top 10 Countries of Import for YR 2008-2009(P) Values in Rs. Crores Rank 1 2 3 4 5 6 7 8 9 10 Country CHINA P RP U ARAB EMTS SAUDI ARAB USA IRAN GERMANY SWITZERLAND KUWAIT NIGERIA KOREA RP Total Apr-Mar 2008 109,116.11 54,233.20 78,110.31 84,625.13 43,945.93 39,736.04 39,570.82 30,959.93 30,662.91 24,307.91 1,012,311.75 Apr-Mar 2009(P) 144,114.78 94,768.04 89,654.59 83,537.24 55,806.96 53,785.86 52,649.41 43,199.45 39,995.41 39,514.39 1,340,587.75 %Growth 32.07 74.74 14.78 -1.29 26.99 35.36 33.05 39.53 30.44 62.56 32.43 %Share 10.75 7.07 6.69 6.23 4.16 4.01 3.93 3.22 2.98 2.95 100.00

pg. 43

Trends in import
S.No
A) B) C) D) E) Commodity BULK IMPORTS PEARLS, PRECIOUS & MACHINERY SEMIPROJECT GOODS PRECIOUS STONES OTHERS Total Apr-Mar 2004 134,451.00 32,757.32 42,752.62 1,819.62 147,327.10 359,107.66 Apr-Mar 2009(P) 620,105.80 66,410.18 183,033.69 14,383.74 456,654.36 1,340,587.75

%Growth 361.21 102.73 328.12 690.48 209.95 273.31

%Share 46.25 4.95 13.65 1.07 34.06 100

Trends in import
The Indian import saw a increment of 273.31% over a period of 6 years (including projections for year 2009) this an massive increment as the oil & petroleum products saw a massive growth on account of increasing energy demand of the country also fertilizer, sugar and other bulk goods saw a healthy growth in their consumption back home. This is a matter of concern as the deficit in foreign trade is increasing year after year. The major group of the commodities saw the following trend:1. Bulk imports:Import of items under bulk category as a whole comprising inter-alia Fertilizers, Cereals, Sugar, Edible Oil, Iron and Steel and Petroleum Crude and Products, Paper and newsprint saw a phenomenal growth of more than 361%. while oil and related products features growth over years as a matter of increased awareness and high fuel prices and to some extent better public transport facilities like metros and other projects and rules it saw only growth of mere 4% during April-Dec 2008-2009 this shows that expenses on other expenses are increasing and it can be well understood by the fact that the economic development is picking up over years and as such requirements of other commodities increased in this section.

pg. 44

2. Pearls, Precious & Semi-precious stones:This section grows at a constant pace each year without much fluctuations as India is becoming a hub to finish the semi-finished jewelry products and then re-export it to other countries. This section features a growth of 102.73%. 3. Machinery:Some of the major heads under this section are imports for 1. Transmission apparatus for radio-telephony, radio-broadcasting 2. Aircraft (for example, helicopters, airplanes); spacecraft 3. Automatic data processing machines, etc. This section witnessed a growth of 328.18% and this very much understood by the increased expenditure on defense and advancement in the field of aerospace. 4. Project goods:Project Imports are the imports of machinery, instruments, and apparatus etc., required for initial sating up of a unit or for substantial expansion of an existing unit. This section saw an increment of triumphing increase of 690.48% this phenomenal increase can be well understood by the good GDP growth figures shown in years previous to 2008.

5. Others:- This head includes various other remaining commodities like 1. Gold & Silver 2. Artificial Resins & Plastic Materials 3. Professional Instruments etc. except electrical 4. Coal, Coke & Briquettes, etc. 5. Medicinal & Pharmaceutical Products 6. Chemical Materials & Products 7. Non-Metallic Mineral Manufactures, etc. This section witnessed a growth of 209.95% which is well justified by the growth of different horizons of the Indian market.

pg. 45

This shows that there is weak negative relation between export and import so as when one increases the other decreases but not that much dependent.

pg. 46

BIBLIOGRAPHY:1. www.commerce.nic.in 2. www.business.gov.in 3. www.wikipedia.org 4. http://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/71947.pdf 5. www.wto.org 6. www.comtrade.un.org 7. www.dailyexportimportdata.com 8. www.dgciskol.nic.in 9. www.ustraderep.gov31
10. http://www.indiastat.com/india/ShowData.asp?secid=331671&ptid=107&level=3

REFERENCE 1) Economic surveys- Ministry of finance, Govt of India various issues. 2) R.B.I. Annual Reports and Monthly Reports various issues 3) Economic and Political Weekly -Various issues. 4) Foreign Trade Review various issues

DATA AND GRAPHS SOURCES 1) Economic survey Govt of India 2002-2003 Table No.6.3 Page.No.101 2) Annual Report RBI 20032004. Page No.94. 3) Economic and Political Weekly May 15-21. 2003- 2004 Page 1982. In the above table and graph the volume of export, imports and trade balance is shown from 1950-51 to2003-2004. Since planning period there is increase in the volume of all factors either positively or negatively. 2. http://commerce.nic.in/publications/anualreport_chapter2-2009-10.asp

pg. 47

pg. 48